Gold rises on softer dollar, easing yields; Fed outlook in focus
GLD•Spot gold rose 0.9% to $4,169.32 an ounce as the dollar softened and Treasury yields eased, while investors assessed the Federal Reserve’s rate outlook. Traders priced an 18% chance of an October rate hike and an 82% chance of a December increase.
1. Gold gains
Spot gold rose 0.9% to $4,169.32 per ounce by 0137 GMT, after hitting a two-month low on Wednesday. U.S. gold futures gained 0.9% to $4,194.40. The dollar rally paused, and the 10-year Treasury yield fell for a second consecutive 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 did not say what policymakers should do at their meeting later this month. Traders priced an 18% chance of an October hike and an 82% chance of a December increase. Last month, the Fed voted unanimously to raise its policy rate by a quarter percentage point.
3. Other metals rise
Spot silver rose 1.1% to $60.00, platinum gained 2.2% to $1,670.15 and palladium climbed 2.1% to $1,146.98. All three metals were on track for weekly losses.
