Gold Rises on Easing Inflation Concerns
Gold rose more than 1% to $4,125 an ounce on Monday as falling oil prices eased inflation concerns, while investors awaited US CPI and PPI data this week for clues on the Federal Reserve’s policy outlook. The gain follows a 5% rally last week after Democrats won control of both chambers of Congress in the US midterm elections, raising hopes for an end to the US-Israeli war with Iran. Oil prices fell sharply on Monday after US President Donald Trump downplayed the likelihood of further strikes against Iran. Gold’s gains came despite a stronger-than-expected US employment report released on Friday, which reinforced expectations of higher interest rates for longer, supporting the dollar and Treasury yields. Markets currently price in an 81% probability of a Fed rate hike in December, according to CME FedWatch. Meanwhile, China’s central bank purchased 25.8 metric tons of gold in October, its largest monthly addition in three years, according to World Gold Council data.
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Gold rose more than 1% to $4,125 an ounce on Monday as falling oil prices eased inflation concerns, while investors awaited US CPI and PPI data this week for clues on the Federal Reserve’s policy outlook. The gain follows a 5% rally last week after Democrats won control of both chambers of Congress in the US midterm elections, raising hopes for an end to the US-Israeli war with Iran. Oil prices fell sharply on Monday after US President Donald Trump downplayed the likelihood of further strikes against Iran.
Gold’s gains came despite a stronger-than-expected US employment report released on Friday, which reinforced expectations of higher interest rates for longer, supporting the dollar and Treasury yields. Markets currently price in an 81% probability of a Fed rate hike in December, according to CME FedWatch. Meanwhile, China’s central bank purchased 25.8 metric tons of gold in October, its largest monthly addition in three years, according to World Gold Council data.