Gold steady as markets brace for inflation data
GLD•Spot gold was steady at $4,200.23 an ounce in early Asian trading, while U.S. December gold futures rose 0.2% to $4,225.50. Investors were watching for U.S. inflation data this week for clues on the Federal Reserve’s next rate move.
1. Gold prices hold steady
Spot gold was at $4,200.23 per ounce by 0010 GMT after reaching a one-week high on Friday. U.S. gold futures for December delivery gained 0.2% to $4,225.50.
2. Inflation data in focus
The U.S. Consumer Price Index is due Wednesday, followed by the Producer Price Index and retail sales data on Thursday. After a 25-basis-point rate hike in September, traders were pricing an 18% probability of another hike in October and an 84% chance of an increase by December. Higher interest rates reduce gold’s appeal relative to yield-bearing assets.
3. Other metals and demand
Gold demand in India was sluggish last week, while trading in China was subdued during the holiday-shortened period. Spot silver rose 0.5% to $61.08, platinum added 0.4% to $1,693.51 and palladium climbed 0.7% to $1,155.84.
