Gold gains as oil price slide cools some inflation concerns
GLD•Spot gold rose 0.4% to $4,012.09 per ounce as lower oil prices eased some inflation concerns ahead of this week’s Fed meeting. Traders priced in a 9% chance of a rate hike Wednesday and an 83% chance in December.
1. Gold climbs above $4,000
Spot gold rose 0.4% to $4,012.09 per ounce by 1126 GMT on Monday, recovering above $4,000 after falling to $3,975 on Friday, its lowest level since July 20. U.S. gold futures for December delivery gained 0.46% to $4,026.10 per ounce.
2. Rates and oil in focus
Lower oil prices helped support gold, but concerns about possible Federal Reserve rate hikes in December and next year limited further gains. Traders priced in a 9% chance of a hike on Wednesday and an 83% chance in December. Brent crude fell 1.6% to around $114 a barrel after reaching a six-month high last week. Investors also awaited U.S. Personal Consumption Expenditures data due October 29.
