Gold eases on firm dollar; spotlight on US inflation data
GLD•Spot gold fell 0.2% to $4,164.45 an ounce as the dollar held near an 18-month high. Markets focused on US CPI due Wednesday and PPI scheduled for Thursday for clues on the Federal Reserve’s rate path.
1. Prices and inflation data
Spot gold eased 0.2% to $4,164.45 per ounce by 0201 GMT after reaching a one-week peak on Monday. US gold futures for December delivery fell 0.1% to $4,187.90. The dollar held near an 18-month high, making dollar-denominated metals more expensive for holders of other currencies.
2. Rate expectations
Analyst Kyle Rodda said US CPI data will be critical for gold in the short term, adding that hotter-than-expected inflation, particularly in the core measure, could prompt higher expectations of an October rate hike and another dip in gold. Traders see a 21% chance of a Fed rate hike this month and an 88% chance of a December increase. Cleveland Fed President Beth Hammack backed moving relatively quickly to a more restrictive policy stance to control inflation.
3. Other metals
Spot silver fell 0.5% to $60.01, platinum declined 0.2% to $1,682.47 and palladium dropped 0.5% to $1,137.69.
