Gold edges lower as investors weigh Fed rate signals
GLD•Spot gold fell 0.3% to $4,125.90 an ounce, while U.S. gold futures settled 0.4% lower at $4,142.60. Traders saw a 92% chance of a Fed rate hike in December, ahead of next week’s policy meeting and PCE inflation data.
1. Gold prices slip
Gold edged lower as investors weighed the prospect of further U.S. interest rate hikes. Spot gold was down 0.3% at $4,125.90 per ounce, and December U.S. gold futures settled 0.4% lower at $4,142.60.
2. Rate outlook in focus
Recent comments from Fed officials tempered expectations for a rate hike at the October 27-28 meeting, while traders priced in a 92% chance of a hike in December. Investors are also watching next week’s U.S. Personal Consumption Expenditures data for clues on inflation and the rate outlook.
3. Gold’s recent decline
Gold was roughly 26% below its January record high of $5,594.82 and about 22% below levels at the start of the Iran war. StoneX strategist Bob Haberkorn said inflation and Fed rates were key concerns for gold, and that U.S. Treasuries appeared more favorable as a safety asset.
