Gold gains on softer oil prices; Fed decision in focus
GLD•Spot gold rose 0.4% to $4,009.87 an ounce as softer oil prices eased inflation concerns and investors awaited the Fed’s decision. Traders priced in a 75% chance of a December rate hike.
1. Gold edges higher
Spot gold rose 0.4% to $4,009.87 per ounce by 0342 GMT, after reaching its lowest level since mid-July in the previous session. It fell 4% last week, its steepest weekly decline since June. December US gold futures gained 0.4% to $4,023.50.
2. Fed decision in focus
Oil prices eased after nearing six-month highs late last week, tempering inflation concerns. Markets awaited the Fed’s policy decision on October 28; traders largely expected rates to remain unchanged this week and priced in a 75% chance of a December hike. US PCE inflation data was due the following day.
