Gold ticks up, yet is set for monthly loss as Fed rate outlook weighs
GLD•Spot gold rose 0.2% to $4,188.17 per ounce but was down more than 5% for September as expectations for higher interest rates weighed on prices. Investors awaited US PCE inflation data for clues on the Federal Reserve’s policy path.
1. Gold edges higher
Spot gold rose 0.2% to $4,188.17 per ounce as of 0920 GMT, but remained on track for a monthly loss of more than 5%. US gold futures gained 1% to $4,219.90.
2. Rate expectations shift
Gold fell nearly 4% on Monday, reaching $4,110.55 per ounce, as strong data and hawkish Federal Reserve comments lifted expectations for further rate increases. After New York Fed President John Williams said there was time to assess data before raising rates again, traders pared October hike bets to about even. CME FedWatch data showed a 45% chance of an October increase and an 89% chance of a December hike.
3. Inflation data awaited
Investors were watching for the US personal consumption expenditures price index, due at 1230 GMT. Silver fell 0.8% to $60.98, platinum rose 0.5% to $1,714.71 and palladium slipped 0.2% to $1,220.98; all three were poised for monthly declines.
