Gold edges lower as focus shifts to US inflation data
GLD•Spot gold fell 0.6% to $4,114.48 an ounce as investors took profits and awaited US inflation data. Traders priced in an 84% chance of a Federal Reserve rate hike in December.
1. Gold slips ahead of data
Spot gold was down 0.6% at $4,114.48 per ounce, while US gold futures for December delivery edged 0.2% higher to $4,123.50. The move followed bullion’s gain of more than 1% in the previous session, with investors awaiting US consumer price data for clues on the Federal Reserve’s policy path.
2. Rates and geopolitical risks
Traders saw an 84% chance of a US rate hike in December. Richmond Federal Reserve President Tom Barkin said the central bank should move with care as it responds to inflation, which he described as its greatest risk, and said he had no base case for the December meeting. Higher rates increase the opportunity cost of holding non-yielding bullion.
3. Other metals diverge
Spot silver fell 0.5% to $53.14 per ounce, platinum was steady at $1,576.44, and palladium dropped 0.2% to $1,039.47. Investors were also watching for US producer price data due Friday.
