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Gold gains as oil slide cools some inflation concerns
Reuters • • business
Key Points:
- Gold prices rose above $4,000 per ounce, reaching $4,014.49, supported by softer oil prices which eased some inflation concerns ahead of the Federal Reserve's policy meeting this week.
- US gold futures for December delivery also increased by 0.5% to $4,028.40 per ounce, with analysts viewing the $4,000 level as a buying opportunity.
- Despite the rise, gold's upside is limited due to market expectations of potential interest rate hikes by the Fed in December and next year, which increase the cost of holding non-yielding assets like gold.
- Brent crude oil prices fell 2% to around $114 per barrel after a recent surge, potentially reducing inflationary pressures and influencing central banks' decisions to hold rates steady this week.
- Investors are awaiting key US inflation data, specifically the Personal Consumption Expenditures (PCE) report on October 29, which is closely monitored by the Fed for its 2% inflation target.
