Gold rises as lower oil prices ease inflation fears ahead of Fed meeting
GLD•Spot gold rose 0.6% to $4,018.81 an ounce as lower oil prices eased inflation concerns ahead of the Federal Reserve’s Wednesday decision. Traders priced an 82% chance of a December rate hike.
1. Gold rebounds
Spot gold rose 0.6% to $4,018.81 an ounce by 11:43 a.m. EDT, rebounding from Friday’s low of $3,975, its lowest since July 20. December U.S. gold futures gained 0.7% to $4,033.60 an ounce. A pullback in oil prices and bargain-hunting supported gold, StoneX strategist Bob Haberkorn said.
2. Fed outlook in focus
Oil prices eased after rising last week, tempering inflation concerns, though markets remained wary of renewed supply disruptions. The Fed’s interest rate decision is due Wednesday, with a pause widely expected after its September hike; traders saw an 82% chance of a December hike. Investors also awaited U.S. personal consumption expenditures data due Thursday.
