Gold holds firm ahead of US inflation data
GLD•Gold held near $4,165.25 an ounce ahead of US CPI data, while December futures rose 0.3% to $4,188.70. Markets priced in a 22% chance of a rate hike this month and an 88% chance in December.
1. Gold prices steady
Spot gold held at $4,165.25 per ounce as of 0447 GMT, while US gold futures for December delivery gained 0.3% to $4,188.70. Investors awaited US consumer price data for clues on the Federal Reserve’s monetary policy.
2. Rate outlook in focus
New York Fed President John Williams said the central bank may need to raise interest rates once more this year to lower inflation. Fed Governor Christopher Waller said the recent rise in US bond yields reflects stronger economic growth, while inflation expectations remain “well-anchored.” Markets priced in a 22% chance of a rate hike this month and an 88% probability of an increase in December.
3. Other metals mixed
An analyst said gold was holding within a range and that weaker CPI, producer price and retail sales data could prompt markets to scale back rate-hike expectations, which may support gold. Spot silver fell 0.2% to $59.33 an ounce, platinum was steady at $1,663.16, and palladium rose 0.7% to $1,133.49.
