Spot gold rose 0.1% to $4,145.22 an ounce as the dollar softened and investors looked ahead to next week’s Fed meeting. Traders priced in an 82% chance of unchanged rates next week and an 89% chance of a hike in December.
Spot gold rose 0.1% to $4,145.22 per ounce by 0347 GMT on Tuesday, while U.S. gold futures for December delivery gained 0.1% to $4,164.70. A softer dollar made bullion priced in dollars more affordable for overseas buyers.
Traders are looking to next week’s Federal Reserve policy meeting for clues on the path of interest rates. The FedWatch Tool showed an 82% chance that rates would remain unchanged next week, while expectations of a December hike stood at 89%. Higher interest rates typically weigh on gold because bullion does not pay interest.
Analyst Kyle Rodda said an unchanged rate decision could initially support gold. He said easing Middle East tensions and lower oil prices could also boost prices; Brent hovered near a five-month high on Tuesday. Spot silver rose 0.7% to $57.48 per ounce, platinum gained 0.7% to $1,651.25 and palladium fell 0.2% to $1,117.87.
