Gold steady ahead of Fed meeting as lower oil prices limit downside
GLD•Spot gold was unchanged at $4,163.65 an ounce on Monday ahead of next week’s Fed meeting, while lower oil prices eased inflation concerns. Traders saw an 82.8% chance the Fed would hold rates this month.
1. Gold holds steady
Spot gold was little changed at $4,163.65 per ounce by 9:03 a.m. EDT, while U.S. gold futures for December delivery were unchanged at $4,183.10. Investors are awaiting next week’s Fed meeting and U.S. Personal Consumption Expenditures inflation data.
2. Rate expectations
Traders saw an 82.8% chance the Fed would leave rates unchanged this month, and expectations for a December increase remained at 90%. A market analyst said the Fed’s guidance tone would matter, with a hawkish message potentially bringing further short-term weakness for gold.
3. Oil eases inflation concerns
Oil prices slipped from a five-month high after President Donald Trump waived sanctions and tariffs on Russia, a move that may lead to more Russian fuel exports. Lower oil prices eased some inflation concerns after strong U.S. CPI and PPI readings the previous week.
