Gold falls to more than two-month low as oil-fuelled inflation fears weigh
GLD•GLD•GLD•GLD•Spot gold fell 2.4% to $4,041.39 per ounce, its lowest since August 3, as rising oil prices stoked inflation concerns and expectations of elevated interest rates. December U.S. gold futures settled 2.2% lower at $4,060.40 per ounce.
Gold fell to a more than two-month low on Thursday as oil prices climbed about 3% to a five-month high, raising inflation concerns and expectations that interest rates could remain elevated for longer. Spot gold was down 2.4% at $4,041.39 per ounce, while December U.S. gold futures settled 2.2% lower at $4,060.40.
Last week's U.S. consumer and producer inflation data came in hotter than expected. Fed officials are expected to hold rates at their October 27-28 meeting, while traders are pricing in a 78% likelihood of an increase in December; PCE data is due October 29.
Silver dropped 5.4% to $54.84 per ounce, platinum fell 3.7% to $1,570.85, and palladium declined 2.7% to $1,057.83. India issued permits to import around 6,500 metric tons of silver over the next six months.
