Gold rises 1% as lower oil prices ease inflation fears
GLD•Spot gold rose 1% to $4,107.01 an ounce as a weaker dollar eased pressure on bullion. Lower oil prices eased inflation concerns, while traders priced in an 82.2% probability of a December Federal Reserve rate hike.
1. Gold and oil moves
Spot gold rose 1% to $4,107.01 an ounce Monday as a weaker dollar eased pressure on bullion. December West Texas Intermediate crude futures fell more than 3% to about $87 a barrel, easing inflation concerns.
2. Rate and inflation outlook
Traders priced in an 82.2% probability of a December Federal Reserve rate hike, limiting gold's upside. October U.S. consumer price data due Tuesday is forecast to show annual headline inflation of 3.9%, up from September's 3.7%. The 10-year Treasury yield rose almost two basis points to 4.876%, increasing competition from yield-bearing assets.
