Gold edges higher on softer oil; Fed rate outlook in focus
GLD•Spot gold rose 0.3% to $4,175.60 per ounce as softer oil prices offered support and investors assessed the Federal Reserve’s rate outlook. Traders priced in a 16% chance of a rate hike this month and a 92% chance of an increase in December.
1. Gold gains modestly
Spot gold rose 0.3% to $4,175.60 per ounce by 0259 GMT, while U.S. gold futures gained 0.4% to $4,196.40. An analyst said softer oil supported gold by easing inflation concerns, and said a sustained oil decline or lower yields would be constructive for the metal.
2. Rates and inflation in focus
Oil prices slipped after President Donald Trump waived sanctions and tariffs on Russia, a move that may lead to more Russian fuel exports. U.S. import prices rose more than expected in September, while investors awaited next week’s Federal Open Market Committee meeting and personal consumption expenditures data. Traders priced in a 16% chance of a rate hike this month and a 92% chance of an increase in December.
