Gold gains on softer oil prices ahead of Fed meeting
GLD•Spot gold rose 0.9% to $4,051.78 an ounce as lower oil prices supported prices ahead of the Federal Reserve meeting. Traders priced in an 83% probability of a US rate hike in December.
1. Gold rises
Spot gold climbed 0.9% to $4,051.78 per ounce by 10:59 a.m. ET, after falling as low as $3,987.14 earlier in the session. US gold futures for December delivery rose 0.69% to $4,066.40 per ounce.
2. Oil and Fed policy
Oil futures fell more than 1% as attention turned to Middle East peace talks. A metals strategist said softer oil prices could ease inflation concerns and moderate expectations for Fed policy, while an analyst warned that rising crude prices could add to inflation and weigh on gold. Fed policymakers were expected not to raise short-term borrowing costs that week, while traders priced in an 83% probability of a hike in December.
3. Other metals
Investors were also awaiting US Personal Consumption Expenditures data due Thursday. Spot silver rose 0.8% to $54.37 per ounce, platinum gained 0.3% to $1,531.95, and palladium fell 1.4% to $1,035.
