Gold steadies near one-week low as oil-driven inflation fears grow
GLD•Gold hovered near a one-week low as rising oil prices stoked inflation fears, with investors watching next week’s Federal Reserve meeting. Spot gold was up 0.1% at $4,127.31 an ounce, while markets priced in an 88% chance of a December rate hike.
1. Gold near weekly low
Spot gold was up 0.1% at $4,127.31 per ounce by 11:10 a.m. EDT after touching its lowest level since October 15. U.S. gold futures for December delivery also rose 0.1%, to $4,145.20 per ounce.
2. Rates and oil in focus
Investors are watching the Federal Reserve’s October 27-28 meeting and next week’s U.S. PCE report for clues on future rate moves. Markets are pricing in an 88% chance of a December rate hike, while nearly all economists surveyed expect the Fed to hold rates steady this month. Oil rose more than $2, with Brent around $108 a barrel, as comments from Iran dimmed hopes for a diplomatic breakthrough with the United States. An analyst said gold could remain range-bound, with its bias to the downside.
