Gold steadies near one-week low as oil-driven inflation fears grow
GLD•Gold hovered near a one-week low, with spot prices steady at $4,133.48 an ounce after touching their lowest since October 15. Oil prices rose more than $2, while markets priced in an 88% chance of a Federal Reserve rate hike in December.
1. Gold near weekly low
Spot gold was steady at $4,133.48 per ounce by 9:10 a.m. EDT on Wednesday, after hitting its lowest level since October 15. U.S. gold futures for December delivery rose 0.23% to $4,152.20 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. personal consumption expenditures report for clues on future rate moves. Markets priced in an 88% chance of a December rate hike, while 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.
3. Downside bias persists
Peter Grant of Zaner Metals said gold could remain range-bound, with the bias to the downside. Giovanni Staunovo of UBS said buying interest emerged below $4,100, but the upside remained limited while the Middle East conflict was a concern. Silver fell 0.62% to $57.62 an ounce, platinum lost 0.47% to $1,641.05, and palladium dropped 0.97% to $1,091.75.
