Gold ticks up after hitting over 7-week low; US data in focus
GLD•Gold rose 1.1% to $4,158.28 an ounce after falling to its lowest level since August 5 on Monday. Investors are watching US employment and PCE data, as markets price in a 68% chance of a Fed rate hike in October and 95% in December.
1. Gold rebounds modestly
Spot gold rose 1.1% to $4,158.28 per ounce by 1136 GMT on Tuesday, after hitting a more-than-seven-week low in the previous session. US gold futures gained 0.5% to $4,190.10. An analyst described the move as a rebound after Monday’s sharp sell-off rather than a fundamental change in sentiment.
2. Rates and data in focus
Gold fell nearly 4% on Monday to as low as $4,110.55, as rising crude oil prices increased expectations for Fed rate hikes. Investors are watching Wednesday’s ADP employment and PCE data, along with remarks from Fed policymakers. Markets see a 68% probability of a rate hike in October and a 95% chance of an increase in December.
3. Oil and other metals
Oil prices were steady amid concern about Middle East supply disruption. Higher oil prices can stoke inflation and lead central banks to keep rates higher for longer, which tends to weigh on gold. Silver was steady at $60.98 per ounce, platinum fell 1.1% to $1,697.73, and palladium rose 1.4% to $1,231.53.
