Gold gains as oil, dollar retreat; investors brace for US inflation test
GLD•Spot gold rose 0.4% to $4,186.91 an ounce as oil and the dollar retreated ahead of US inflation data due this week. Traders priced in a 17% chance of a Federal Reserve rate hike this month and an 87% chance of a December increase.
1. Gold edges higher
Spot gold gained 0.4% to $4,186.91 per ounce by 08:58 GMT on Tuesday, while US December gold futures rose 0.5% to $4,211.30. Oil prices were on track for their first decline in nearly a week, the dollar slipped from an 18-month high and the US 10-year Treasury yield fell to its lowest level since October 2.
2. Inflation data in focus
US consumer price data for September is due Wednesday, followed by producer prices and retail sales on Thursday. Saxo Bank’s Ole Hansen said the releases could shape bond yields, the dollar and precious metals. Lower yields reduce the opportunity cost of holding gold, which does not pay interest.
3. Rate outlook and metals
Cleveland Fed President Beth Hammack said the central bank should move “relatively quickly” to a more restrictive policy stance to control inflation. UBS analyst Giovanni Staunovo said central-bank diversification and concerns about public debt should support gold, and said UBS expects prices to stabilize and resume their uptrend toward year-end and into 2027. Silver rose 0.2%, platinum gained 0.9% and palladium rose 0.5%.
