Gold edges up as oil retreat lends support; Fed decision in focus
GLD•Gold rose 0.2% to $4,172.87 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 an increase in December.
1. Gold gains as oil falls
Spot gold rose 0.2% to $4,172.87 per ounce by 1109 GMT, while US gold futures for December delivery gained 0.3% to $4,193.30. UBS analyst Giovanni Staunovo said lower oil prices were easing pressure on the Fed and supporting gold, which was holding up despite a stronger dollar.
2. Rates and inflation in focus
Oil slipped from a five-month high after US President Donald Trump waived sanctions and tariffs on Russia, a move that may lead to more Russian fuel exports. Investors are awaiting next week’s Fed meeting and US PCE inflation data. Staunovo said the Fed is expected to hold rates steady and that incoming inflation and labor-market data will be key to the rate outlook.
3. Other metals advance
According to the CME FedWatch Tool, traders priced in a 15% chance of a rate hike this month and an 89% chance of a December increase. Spot silver gained 1.2% to $57.6704 per ounce, platinum rose 1.3% to $1,652.22, and palladium climbed 2% to $1,134.25.
