Gold eases as higher oil prices stoke inflation concerns
GLD•Spot gold fell 0.5% to $4,120.87 an ounce as rising oil prices raised inflation concerns. Investors are watching next week’s Federal Reserve decision and PCE inflation data; traders see a 92% chance of a December rate hike.
1. Gold prices slip
Spot gold fell 0.5% to $4,120.87 per ounce by 1103 GMT on Tuesday, while U.S. gold futures for December delivery dropped 0.5% to $4,139.90. Oil prices advanced, with Brent near a five-month high of $111.75 a barrel.
2. Fed outlook in focus
Investors are looking to next week’s Federal Reserve meeting and PCE inflation data for clues on the interest-rate outlook. Traders largely expect the Fed to leave rates unchanged at its October 27-28 meeting, while markets see a 92% chance of a hike in December.
3. Other precious metals
An analyst said persistent inflationary pressures driven by high energy prices continued to support expectations of further monetary tightening. Silver was steady at $57.0974 an ounce, platinum edged down 0.1% to $1,639.36, and palladium fell 1.1% to $1,107.61.
