Gold edges higher as investors assess Fed rate-hike odds
GLD•Spot gold rose 0.2% to $4,174.54 an ounce, while U.S. gold futures gained 0.4% to $4,195.70. Traders priced in a 16% chance of a Fed rate hike this month and a 92% chance of an increase in December.
1. Gold prices rise
Spot gold was up 0.2% at $4,174.54 per ounce by 0031 GMT on Monday, while U.S. gold futures for December delivery rose 0.4% to $4,195.70. Investors weighed the likelihood of a Federal Reserve rate hike later this year and awaited fresh cues on the central bank’s policy path.
2. Rate expectations and inflation
Traders were pricing in a 16% chance of a rate hike this month and a 92% chance of an increase in December, according to CME’s FedWatch Tool. U.S. import prices rose more than expected in September, while Fed Chairman Kevin Warsh said he was optimistic about the strength of the U.S. economy. Higher interest rates reduce the appeal of non-yielding gold.
3. Other metals advance
Spot silver rose 0.5% to $57.27 per ounce, platinum gained 0.4% to $1,637.24 and palladium climbed roughly 1% to $1,122.32.
