Gold holds near one-week low as hot US inflation boosts Fed hike bets
GLD•GLD•GLD•GLD•Spot gold rose 0.2% to $4,039.07 an ounce in early Asian trade but stayed near a one-week low after falling nearly 3% in the previous session. Traders priced in a 100% chance of a December Fed rate increase, up from 84% before US inflation data.
Spot gold rose 0.2% to $4,039.07 per ounce as of 0025 GMT, after falling nearly 3% in the previous session. US December gold futures gained 0.4% to $4,046.40.
US inflation accelerated more than expected in October, and traders raised the perceived chance of a December Fed rate increase to 100% from 84% before the data. Higher interest rates increase the opportunity cost of holding non-yielding gold. Fed Vice Chair of Supervision Michelle Bowman said lowering inflation remained the central bank’s top priority, while saying price pressures should ease next year as recent economic shocks fade.
