Gold dips for fourth session as oil rally fans inflation concerns
GLD•Spot gold fell 0.2% to $4,115.96 an ounce on Wednesday, its fourth consecutive session of declines, as rising oil prices stoked inflation concerns. Investors awaited the Federal Reserve’s October 27-28 meeting; markets priced in a 15% chance of an October rate hike and a 90% chance of a December hike.
1. Gold extends losses
Spot gold fell 0.2% to $4,115.96 per ounce by 0717 GMT, while U.S. gold futures for December delivery slipped 0.2% to $4,133.60. Oil prices rose more than $1 as Middle East tensions raised supply-disruption concerns, adding to inflation worries and supporting expectations for tighter monetary policy.
2. Rate decisions in focus
Markets are looking to the Fed’s October 27-28 meeting for clues on interest rates. Expectations of a hike at that meeting were as low as 15%, while traders saw a 90% chance of a December hike. Investors are also awaiting U.S. personal consumption expenditures data next week. Silver fell 1.4% to $57.18 an ounce, platinum declined 1.3% to $1,627.35 and palladium dropped 1.6% to $1,084.95.
