Gold gains on softer oil prices ahead of Fed meeting
GLD•Gold rose about 1% to $4,055.14 an ounce as lower oil prices eased inflation concerns, while investors awaited the Federal Reserve meeting. Traders priced an 83% probability of a US rate hike in December.
1. Gold rises
Spot gold climbed 1% to $4,055.14 per ounce by 1:44 p.m. ET, after earlier falling to $3,987.14. US December gold futures settled 0.9% higher at $4,074.60.
2. Oil and Fed outlook
Softer oil prices supported gold by easing inflation worries and potentially moderating expectations for Fed policy, Peter Grant of Zaner Metals said. Oil futures fell more than 1% as attention turned to Middle East peace talks. Fed policymakers were expected not to raise short-term borrowing costs this week, but traders priced an 83% probability of a rate hike in December. Investors were also awaiting US personal consumption expenditures data due Thursday.
3. Other metals
Spot silver rose 0.5% to $54.20 per ounce, while platinum gained 0.3% to $1,530.75. Palladium fell 2.1% to $1,027.67. Analysts lowered their 2026 gold price forecast for a second consecutive quarter, citing high Treasury yields, a strong dollar and expectations that rates will stay higher for longer, while still expecting a recovery in 2027.
