Gold inches higher as softer US inflation dims October Fed hike bets
GLD•Spot gold rose 0.5% to $4,175.19 an ounce after US inflation in August came in below forecasts, lowering the market-implied chance of an October Fed rate hike to 38% from 45%. Gold had fallen more than 6% in September.
1. Inflation shifts rate bets
Gold edged higher on Thursday after softer-than-expected US inflation data tempered expectations for a Federal Reserve rate hike this month. Traders priced in a 38% chance of an October increase, down from 45% before the data, while the market-implied probability of a December increase remained 97%.
2. Jobs report ahead
US nonfarm payrolls data for September is due Friday. The US dollar held near a two-month high, limiting gold's gains; a stronger dollar makes dollar-priced metals costlier for holders of other currencies.
