Gold gains as lower oil prices temper inflation fears; US inflation in focus
GLD•Gold rose 0.7% to $4,094.43 an ounce as lower oil prices eased inflation concerns, with investors awaiting US consumer price data on Tuesday and producer price figures on Friday. Traders saw an 81% chance of a Federal Reserve rate hike in December.
1. Gold rises ahead of data
Spot gold rose 0.7% to $4,094.43 an ounce by 0918 GMT on Monday, while US gold futures for December delivery gained 0.7% to $4,103.60. Bullion rose about 5% last week.
2. Oil and rate outlook
Lower oil prices, a softer dollar and easing bond yields supported gold, while investors weighed the Federal Reserve’s rate outlook. Traders saw an 81% chance of a rate hike in December, up from 73% before US jobs data reinforced expectations that rates could stay higher for longer.
3. Inflation data in focus
Investors were looking to US consumer price data on Tuesday and producer price figures on Friday for clues to the Fed’s next move. An analyst said persistent inflation could support further tightening and weigh on bullion, while a downside surprise could fuel a rebound.
