Gold edges up as softer crude tempers inflation concerns
GLD•Spot gold rose 0.2% to $4,073.59 per ounce as softer oil prices eased inflation concerns, while expectations of higher US interest rates capped gains.
1. Gold edges higher
Spot gold was up 0.2% at $4,073.59 per ounce by 0016 GMT, while US gold futures for December delivery rose 0.2% to $4,082.30. Bullion had gained roughly 5% for the week on Friday.
2. Rates weigh on bullion
Oil prices fell after US President Donald Trump said he was highly unlikely to order more attacks on Iran while talks to end the conflict continued. Strong October US payrolls and a lower unemployment rate reinforced expectations of higher interest rates, with traders pricing in a 79% chance of a Fed rate increase in December, up from 71% before the data. Higher rates increase the opportunity cost of holding non-yielding bullion.
3. Other metals rise
Spot silver gained 0.9% to $52.32 per ounce, platinum rose 0.8% to $1,545.13 and palladium climbed 0.9% to $1,032.52.
