Gold nudges higher with inflation risks and Fed rate path in focus
GLD•Spot gold rose 0.3% to $4,147.77 an ounce, while U.S. gold futures gained 0.4% to $4,172.70. Traders priced an 18% chance of a U.S. rate hike in October and an 81% chance in December.
1. Gold prices rise
Spot gold rose 0.3% to $4,147.77 per ounce by 0043 GMT, after hitting a two-month low on Wednesday. U.S. gold futures for December delivery gained 0.4% to $4,172.70.
2. Rate expectations in focus
St. Louis Fed President Alberto Musalem said the central bank will need to raise rates again to bring inflation back to its 2% target, but declined to say what policymakers should do at their meeting later this month. Traders were pricing an 18% chance of a U.S. rate hike in October and an 81% probability of an increase in December. Higher rates can diminish gold’s appeal as a non-yielding asset.
3. Other metals advance
Spot silver rose 0.5% to $59.62, platinum added 1.4% to $1,656.35 and palladium climbed 1.1% to $1,135.25, though all three were on track for weekly losses.
