Gold gains on softer oil prices; Fed decision in focus
GLD•Spot gold rose 0.4% to $4,010.51 per ounce as softer oil prices tempered inflation concerns, while investors awaited the Fed’s October 27-28 meeting. Traders priced in a 77% chance of a December rate hike.
1. Gold edges higher
Spot gold rose 0.4% to $4,010.51 per ounce by 0544 GMT, after reaching its lowest level since mid-July in the previous session. Bullion fell 4% for the week through Friday, its steepest weekly decline since June. US gold futures for December delivery gained 0.4% to $4,024.00.
2. Fed decision in focus
Lower oil prices eased inflation concerns, but markets awaited the Fed’s October 27-28 policy meeting. Traders largely expected rates to remain unchanged this week, while pricing in a 77% chance of a hike in December. US Personal Consumption Expenditures data, a key inflation gauge watched by the central bank, was due the following day.
