Gold edges higher on softer oil prices; US midterms in focus
GLD•Spot gold rose 0.2% to $3,953.37 per ounce after recovering from an earlier 1% decline, as lower oil prices eased inflation concerns and traders awaited US midterm election results.
1. Gold rebounds
Spot gold rose 0.2% to $3,953.37 per ounce by 9:07 a.m. ET, after falling as much as 1% to $3,893.31 earlier in the session. US gold futures for December delivery fell 0.2% to $3,963.50 per ounce.
2. Oil and rates
Oil prices fell about 2% after President Donald Trump said the US would end billions of dollars in annual military support to Israel. Traders priced in a 73% chance of a Federal Reserve rate increase in December, down from 76% earlier in the day; the pullback in rate expectations lent support to gold.
3. Election and demand
Investors awaited US midterm election results for clues on fiscal policy. The World Gold Council lowered its forecast for growth in gold investment this year to 200 metric tons from 400 tons, citing weaker appetite for bars and coins, while raising its estimate for central bank purchases.
