Gold rises more than 1%, Fed outlook in focus
GLD•Spot gold rose 1.1% to $4,177.44 an ounce as the dollar and Treasury yields eased. Traders weighed inflation concerns and the outlook for Federal Reserve rates, with markets pricing a 17% chance of an October hike and an 83% chance of a December hike.
1. Gold gains as yields ease
Spot gold rose 1.1% to $4,177.44 per ounce by 0353 GMT, after hitting a two-month low on Wednesday. U.S. gold futures gained 1.1% to $4,202.00 as the dollar rally paused and the 10-year Treasury yield fell for a second straight session.
2. Rate outlook in focus
St. Louis Fed President Alberto Musalem said the central bank will need to raise rates again to bring inflation back to its 2% target, but declined to say what policymakers should do at their meeting later this month. Traders priced in a 17% chance of an October rate hike and an 83% chance of a December increase. Silver, platinum and palladium also rose, though all three were on track for weekly losses.
