Gold ticks up as oil eases; spotlight on US inflation data
GLD•Spot gold rose 0.4% to $4,185.69 an ounce as oil prices slipped and markets awaited US inflation data. Traders priced in a 19% chance of an October Fed rate hike and an 85% chance of a December increase.
1. Gold edges higher
Spot gold rose 0.4% to $4,185.69 an ounce by 0356 GMT after reaching a one-week high on Monday. US December gold futures gained 0.5% to $4,209.90, while oil prices fell and were on track for their first decline in nearly a week.
2. Inflation data in focus
Markets were watching for US CPI data due Wednesday and a PPI report scheduled for Thursday. Kyle Rodda, a senior financial market analyst at Capital.com, said CPI would be critical for gold in the short term and that hotter-than-expected inflation, particularly in the core measure, could lead to another dip in gold. Traders saw a 19% chance of a Fed rate hike this month and an 85% chance of a December increase.
3. Fed policy and other metals
Cleveland Fed President Beth Hammack said the central bank should move “relatively quickly” to a more restrictive policy stance to control inflation, which she said had become broader-based and was beginning to affect firms’ pricing plans. Spot silver gained 0.2% to $60.42, platinum added 0.7% to $1,697.40, and palladium rose 0.1% to $1,144.30.
