Gold dips for fourth session as oil rally fans inflation concerns
GLD•Spot gold fell 0.2% to $4,118.18 an ounce, its fourth consecutive session of declines, as higher oil prices stoked inflation concerns. Investors awaited next week’s Federal Reserve meeting; markets priced in a 16% chance of an October rate hike and a 90% chance of a December hike.
1. Gold prices retreat
Spot gold was down 0.2% at $4,118.18 per ounce by 0319 GMT on Wednesday, while U.S. gold futures for December delivery fell 0.2% to $4,136.20. Silver slid 0.9% to $57.44 per ounce, platinum dropped 0.6% to $1,638.61 and palladium slipped 1.1% to $1,090.84.
2. Oil and rates in focus
Higher oil prices stoked inflation concerns, while investors looked ahead to the Federal Reserve’s October 27-28 policy meeting. Expectations of an October rate hike were as low as 16%, while traders saw a 90% chance of a hike in December. Markets were also awaiting U.S. personal consumption expenditures data next week.
