Gold rebounds on weaker dollar, yield drop; October Fed hike bets subdued
GLD•Gold rose more than 1% as the dollar weakened and Treasury yields fell, despite hotter-than-expected US producer-price data. Traders priced in about a 29% chance of a Federal Reserve rate hike later this month.
1. Gold gains
Spot gold rose 1.1% to $4,149 an ounce by 12:36 a.m. EDT, after falling to a one-week low in the previous session. US December gold futures gained 1.5% to $4,170.10 an ounce.
2. Dollar and yields fall
The dollar slipped 0.4%, while the benchmark 10-year Treasury yield was at a three-week low. Producer prices increased by the most in 4-1/2 years in September, and the prior day's consumer-price report showed prices accelerated on higher gasoline costs.
3. Rate expectations subdued
San Francisco Fed President Mary Daly and Vice Chair for Supervision Michelle Bowman said an immediate rate hike might not be required, tempering expectations of an October increase. Investors were watching for comments from Fed Chair Kevin Warsh; spot silver gained 2.3%, platinum rose 0.4% and palladium climbed 3.2%.
