Gold ticks up as oil eases; spotlight on US inflation data
GLD•Spot gold rose 0.4% to $4,188.27 an ounce as oil prices slipped and markets awaited US inflation data. Traders priced in a 19% chance of a Federal Reserve rate hike this month and an 85% chance of a December increase.
1. Gold edges higher
Spot gold rose 0.4% to $4,188.27 per ounce by 06:24 GMT after reaching a one-week peak on Monday. US gold futures for December delivery gained 0.5% to $4,212.50 per ounce, while oil prices fell.
2. Inflation data in focus
The US Consumer Price Index is due Wednesday and the Producer Price Index report is scheduled for Thursday. Analyst Kyle Rodda said CPI would be critical for gold in the short term, adding that hotter-than-expected inflation, particularly in the core measure, could prompt another dip in gold if it increases expectations of an October rate hike. Cleveland Fed President Beth Hammack backed moving relatively quickly to a more restrictive policy stance to control inflation.
