Gold Advances as Oil Prices Retreat
Gold climbed above $4,100 per ounce on Monday, extending last week’s gains as declining oil prices eased inflationary pressures, although expectations of a more hawkish Federal Reserve capped further upside. Oil prices continued to fall after President Donald Trump said it was “highly unlikely” he would authorize additional strikes on Iran if negotiations over its nuclear program and the reopening of the Strait of Hormuz make significant progress. Meanwhile, US data released on Friday showed that job growth accelerated in October, while the unemployment rate declined to 4.1%, highlighting the resilience of the labor market and strengthening expectations of a potential Fed rate hike in December. Markets are now pricing in an approximately 81% probability of a quarter-point rate increase before year-end, up from 71% ahead of the employment report. Investors are now turning their attention to key US inflation data due this week for further clues on the Fed’s monetary policy direction.
Story updates
Gold climbed above $4,100 per ounce on Monday, extending last week’s gains as declining oil prices eased inflationary pressures, although expectations of a more hawkish Federal Reserve capped further upside. Oil prices continued to fall after President Donald Trump said it was “highly unlikely” he would authorize additional strikes on Iran if negotiations over its nuclear program and the reopening of the Strait of Hormuz make significant progress.
Meanwhile, US data released on Friday showed that job growth accelerated in October, while the unemployment rate declined to 4.1%, highlighting the resilience of the labor market and strengthening expectations of a potential Fed rate hike in December. Markets are now pricing in an approximately 81% probability of a quarter-point rate increase before year-end, up from 71% ahead of the employment report. Investors are now turning their attention to key US inflation data due this week for further clues on the Fed’s monetary policy direction.