Gold edges up as oil retreat lends support; Fed decision in focus
GLD•Spot gold rose 0.2% to $4,171.65 an ounce as lower oil prices eased inflation concerns ahead of next week’s Federal Reserve decision. Traders priced in a 15% chance of a rate hike this month and an 89% chance of a December increase.
1. Gold gains modestly
Spot gold rose 0.2% to $4,171.65 per ounce by 0853 GMT, while U.S. gold futures for December delivery gained 0.26% to $4,191.90. UBS analyst Giovanni Staunovo said lower oil prices were easing pressure on the Fed, supporting gold, while safe-haven demand was benefiting the metal even as the dollar strengthened.
2. Rates and inflation ahead
Oil slipped from a five-month high after U.S. President Donald Trump waived sanctions and tariffs on Russia, a move that may lead to more Russian fuel exports. Investors are watching next week’s Fed decision and U.S. PCE inflation data; the central bank is widely expected to hold rates steady. CME FedWatch data showed traders pricing in a 15% chance of a rate hike this month and an 89% chance of an increase in December.
3. Other metals rise
Staunovo said incoming inflation and labor-market data would be key to the rate outlook. Spot silver rose 0.85% to $57.49 per ounce, platinum gained 1.27% to $1,651.05 and palladium climbed 1.17% to $1,125.44.
