Gold slips from one-week high as firm US dollar weighs
GLD•Gold fell 0.5% to $4,171.18 an ounce after reaching a one-week high, as the dollar held near its strongest level in a year and a half ahead of US inflation data.
1. Gold prices retreat
Spot gold fell 0.5% to $4,171.18 per ounce by 1132 GMT on Monday, after reaching its highest level since October 2 earlier in the session. US December gold futures also dropped 0.5%, to $4,195.50 per ounce.
2. Inflation data in focus
The dollar held near a one-and-a-half-year high as investors awaited the US Consumer Price Index report due Wednesday and the Producer Price Index and retail sales data due Thursday. ActivTrades director and CEO Ricardo Evangelista said a firm dollar and caution ahead of the data were pressuring gold. He said higher-than-expected inflation readings could strengthen expectations of further Fed tightening, while softer figures could ease those expectations and support gold.
3. Rate expectations
Traders priced an 18% chance of a Fed rate hike this month and an 85% probability of a hike by December. Silver fell 0.3% to $60.62 per ounce, platinum slipped 0.2% to $1,690.90, and palladium rose 0.6% to $1,154.21.
