Gold steadies after hitting one-week low
GLD•Gold was nearly steady at $4,114.57 an ounce after hitting a one-week low, as hotter U.S. inflation data lifted expectations of a Federal Reserve rate hike this month. December U.S. gold futures rose 0.7% to $4,136.10.
1. Gold prices stabilize
Spot gold was little changed at $4,114.57 per ounce as of 0007 GMT, after reaching its lowest level since October 7 in the previous session. U.S. gold futures for December delivery rose 0.7% to $4,136.10.
2. Rate expectations rise
U.S. consumer prices accelerated in September as gasoline costs surged, putting a rate increase later this month back on the radar. The probability of a hike this month rose to roughly 32%, from 22% before the data, according to CME's FedWatch Tool. San Francisco Fed President Mary Daly said rates would probably need to rise further, while signaling no need for a hike at the October 27-28 meeting.
3. Other metals and data
Higher interest rates reduce gold's appeal because it pays no interest, although gold is viewed as an inflation hedge. Investors were focused on producer price and retail sales data due later in the day. Spot silver rose 0.2% to $55.72 an ounce, platinum fell 0.5% to $1,598.96, and palladium gained 0.6% to $1,100.25.
