Gold gains as lower oil prices ease inflation fears
GLD•Spot gold rose 0.9% to $4,102.25 an ounce as lower oil prices eased inflation concerns and investors awaited US inflation data that could shape the Federal Reserve’s rate outlook.
1. Gold rises
Spot gold gained 0.9% to $4,102.25 per ounce by 1125 GMT on Monday. US gold futures for December delivery also rose 0.9%, to $4,111.60.
2. Investors await inflation data
Lower oil prices, a softer dollar and easing bond yields supported gold, while markets focused on US consumer price data due Tuesday and producer price figures due Friday. Traders saw an 81% probability of a Federal Reserve rate hike in December, up from 73% before US jobs data.
3. Other market factors
Gold rose about 5% last week after Democrats won control of both chambers of Congress, raising hopes for an end to the US-Israeli war with Iran. China’s central bank added about 25.8 metric tons of gold to its reserves in October, its largest monthly purchase in three years, according to World Gold Council data.
