Gold off three-month lows as oil rally fans inflation worries
GLD•Spot gold edged up from a three-month low of $3,986.50 an ounce but was down 3.5% for the week, as rising oil prices fueled expectations of higher-for-longer interest rates. Silver and palladium also hit multimonth lows.
1. Gold remains under pressure
Spot gold was at $4,026.15 per ounce by 0936 GMT, after earlier falling to its lowest level since July 20. Bullion was down 3.5% for the week, its second consecutive weekly loss and its steepest weekly decline since June. December U.S. gold futures fell 0.5% to $4,040.70 per ounce.
2. Oil raises rate concerns
Rising oil prices fueled expectations that interest rates could stay higher for longer, pressuring gold, which does not yield interest. Brent crude touched a more than five-month high after Houthi attacks in Saudi Arabia raised concerns about further energy-supply disruptions. Market expectations of a Fed rate hike were 9% for its October 27–28 meeting and 81% for December.
3. Other metals fall
Spot silver slid 1.2% to $53.8882 an ounce, while palladium dropped 0.3% to $1,051.06. Platinum fell 0.8% to $1,557.03, its lowest since July. All three metals were headed for weekly declines.
