Gold firms as softer US inflation dims October Fed hike bets
GLD•Spot gold rose 0.8% to $4,187.43 per ounce after US inflation undershot forecasts, reducing the market-implied chance of an October Fed rate hike to 36% from 45%.
1. Inflation eases hike bets
Gold rose on Thursday after US inflation in August came in below expectations and price pressures for the prior month were revised lower. Markets priced in a 36% chance of an October rate hike, down from 45% before the data; the probability of a December increase remained 89%.
2. Gold starts October higher
Spot gold gained 0.8% to $4,187.43 per ounce by 0625 GMT, after falling more than 6% in September. US gold futures for December delivery rose 0.7% to $4,217.50. A stronger US dollar limited gains, while the September nonfarm payrolls report was due Friday.
3. Other metals rise
Silver rose 1.4% to $61.23 per ounce, platinum climbed 1.2% to $1,727.18 and palladium gained 0.6% to $1,210.75.
