Gold lackluster ahead of inflation data as oil prices rise
GLD•Other metals close mixed
Among other metals, silver XAG= edged 0.3% higher to $66.34 per ounce, platinum XPT= rose 1.1% to $1,843.99 and palladium XPD= slid 2.5% to $1,354.15.
Gold edges lower as oil prices fuel inflation concerns
Gold prices inched lower on Tuesday, as rising oil prices fueled inflation concerns and boosted expectations for a rate hike by the Federal Reserve in September, with investors awaiting U.S. inflation data for further clues on monetary policy outlook.
Spot gold XAU= fell 0.4% to $4,385.09 per ounce by 02:22 p.m. EDT (1822 GMT), while U.S. gold futures GCcv1 for December delivery dropped 1% to settle at $4,430.10.
"Gold is range-bound because it is capped by a higher probability of raising interest rates, which continues to hinder momentum in the market," said Daniel Pavilonis, senior market strategist at StoneX.
Oil gains and upcoming inflation data keep rate expectations in focus
Oil prices touched multi-week highs after Yemen's Tehran-backed Houthis attacked Saudi energy facilities and Tehran threatened the United States with "economic warfare." O/R
Brent crude neared the $100-per-barrel mark, touching $99.46, its highest level since July 24, fueling inflation worries.
The market continues to absorb the stronger-than-expected U.S. jobs report and await upcoming CPI and PPI data, while higher oil prices are stoking inflation concerns and supporting expectations for a September rate hike, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Spot gold fell as much as 2.4% on Friday after data showed U.S. job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, reinforcing signs of resilience in the labor market.
