Gold rebounds from one-week low as dollar slips
GLD•Spot gold rose 1% to $4,146.74 an ounce after hitting a one-week low, as the dollar eased. Traders priced in a 29% chance of a Fed rate hike this month, up from 22% before US inflation data.
1. Gold prices climb
Spot gold gained 1% to $4,146.74 per ounce by 0501 GMT, rebounding after reaching its lowest level since October 7 on Wednesday. US gold futures for December delivery rose 1.5% to $4,167.30.
2. Rate outlook in focus
The dollar slipped after reaching an 18-month high overnight. Traders raised the probability of a rate hike later this month to about 29% from 22% before US consumer prices accelerated in September. San Francisco Fed President Mary Daly said further rate increases would probably be needed, but signalled no need for a move at the October 27-28 meeting; Fed Vice Chair Michelle Bowman said there was time to wait and see.
3. Other metals rise
An analyst described the market as uncertain about US interest rate policy and said gold was approaching a critical level just below $4,000. Producer prices and retail sales data were due later on Thursday. Silver rose 0.7%, platinum gained 1%, and palladium climbed 1.3%.
