Gold falls to more than two-month low as oil-fuelled inflation fears weigh
GLD•Spot gold fell 1.4% to $4,084.25 an ounce, its lowest level since August 4, as rising oil prices stoked inflation concerns and expectations that interest rates could remain elevated. U.S. gold futures fell 1.2% to $4,100.30 an ounce.
1. Gold prices fall
Spot gold fell 1.4% to $4,084.25 per ounce by 9:11 a.m. EDT on Thursday, after touching its lowest level since August 4. U.S. gold futures for December delivery dropped 1.2% to $4,100.30 per ounce.
2. Oil and rate concerns
Brent crude rose to its highest level since May after Houthi attacks in Saudi Arabia heightened concerns about a wider escalation. Higher oil prices raised inflation concerns and reinforced expectations that rates could stay elevated for longer. Traders priced in an 86% likelihood of a December rate increase, while the Federal Reserve was expected to hold rates at its October 27-28 meeting.
3. Other metals decline
U.S. Personal Consumption Expenditures data due October 29 could offer further clues on the rate outlook. Silver fell 3.6% to $55.89 per ounce, platinum dropped 2.7% to $1,584.15, and palladium fell 1.9% to $1,066.89. India issued permits to import about 6,500 metric tons of silver over the next six months.
