Gold rises after cooler inflation data, but monthly decline looms
GLD•Spot gold rose 0.7% to $4,209.71 an ounce after the U.S. PCE Price Index rose 0.3% last month, while gold was down 5.4% in September. Markets lowered the chance of an October rate hike to about 37%, from about 45% before the data.
1. Gold gains on inflation data
Spot gold rose 0.7% to $4,209.71 an ounce as of 9:05 a.m. ET, but was down 5.4% in September so far. U.S. gold futures gained 1.5% to $4,241.90.
2. PCE inflation figures
The Personal Consumption Expenditures Price Index rose 0.3% last month after a downwardly revised 0.1% gain in July. PCE inflation advanced 2.6% in the 12 months through August, while core PCE increased 3.0% year on year.
3. Rate hike odds fall
Financial markets saw about a 37% chance of an October rate hike, down from about 45% before the PCE data. Silver fell 0.5%, platinum rose 0.4% and palladium eased 0.1%; all three were poised for monthly declines.
