Gold rebounds on weaker dollar, yields; October Fed hike bets subdued
GLD•Gold rose 1.3% to $4,156.52 an ounce as the dollar weakened and Treasury yields fell, despite stronger-than-expected US producer prices. Traders priced in about a 30% chance of a Federal Reserve rate hike later in October.
1. Gold gains as yields fall
Spot gold climbed 1.3% to $4,156.52 per ounce by 9:30 a.m. EDT, putting it on track to snap a three-session losing streak. December US gold futures rose 1.7% to $4,177.80 per ounce. The dollar slipped 0.5%, and the 10-year Treasury yield was at a three-week low.
2. Rate hike bets ease
US producer prices rose by the most in 4-1/2 years in September, following a consumer price report showing prices accelerated on higher gasoline costs. Despite the data, remarks from San Francisco Fed President Mary Daly and Fed Vice Chair for Supervision Michelle Bowman tempered expectations for an immediate rate hike. Traders priced in about a 30% chance of a hike later this month.
3. Other metals advance
Investors were watching for Fed Chair Kevin Warsh's comments at the International Monetary Fund's annual meeting for clues ahead of this month's Fed meeting. Spot silver gained 2.1% to $56.78 per ounce, platinum rose 0.6% to $1,616.54, and palladium climbed 3.4% to $1,131.25.
