Gold rises more than 1%, Fed outlook in focus
GLD•Spot gold rose 1.4% to $4,190.57 an ounce as a softer dollar and lower oil prices supported prices, while traders weighed inflation concerns and the Federal Reserve’s rate outlook. Palladium gained 3.3%.
1. Gold gains on Friday
Spot gold rose 1.4% to $4,190.57 an ounce by 0630 GMT, after hitting a two-month low on Wednesday, and was headed for a weekly gain. U.S. gold futures for December delivery also gained 1.4%, to $4,215.30.
2. Fed rate outlook in focus
The dollar’s rally paused, making gold more affordable for holders of other currencies, while oil prices fell as concerns about Middle East supply eased. St. Louis Fed President Alberto Musalem said rates would need to rise again to bring inflation back to the Fed’s 2% target, but declined to say what policymakers should do at their meeting later this month. Traders priced a 17% chance of a rate hike in October and an 83% chance in December.
3. Other metals rise
Spot silver rose 1.5% to $60.22 an ounce, platinum gained 2.7% to $1,677.80, and palladium climbed 3.3% to $1,159.70.
