Gold rises as lower oil prices ease inflation fears ahead of Fed meeting
GLD•Spot gold rose 0.6% to $4,020.60 an ounce on Monday, rebounding from Friday’s more than three-month low as lower oil prices eased inflation concerns ahead of the Fed’s Wednesday decision. December gold futures settled 0.8% higher at $4,038.40 an ounce.
1. Gold rebounds
Spot gold rose 0.6% to $4,020.60 per ounce by 2:09 p.m. EDT, after falling to $3,975 on Friday, its lowest level since July 20. US December gold futures settled 0.8% higher at $4,038.40 per ounce. A pullback in oil prices and bargain-hunting supported gold, StoneX strategist Bob Haberkorn said.
2. Investors await Fed
Oil prices fell after surging last week, easing some 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 see an 80% chance of a rate hike in December. Investors are also watching US Personal Consumption Expenditures data due Thursday for clues on the rate outlook.
