From The Economic Times · Reuters · · 1m 20s
Gold Rises as Fed Rate Hike Odds Assess
Investors boost gold prices as Fed rate hike odds rise.
In brief
Investors boost gold prices as Fed rate hike odds rise. Gold prices edged higher as investors weighed Federal Reserve rate hike likelihood. Originally reported by The Economic Times.
Gold Prices Edge Higher
Gold prices edged higher in early Asian trading on Monday as investors weighed the likelihood of a Federal Reserve rate hike later this year.
Spot Gold at $4,174.54
Spot gold was up 0.2% at $4,174.54 per ounce by 0031 GMT, while U.S. gold futures for December delivery rose 0.4% to $4,195.70.
Fed Chairman Optimistic
Fed Chairman Kevin Warsh said he was optimistic about the strength of the US economy and surprised by how well global economies had 'hung in there' despite energy shocks and tighter monetary policy.
Inflation Pressures Rise
US import prices increased more than expected in September, boosted by higher costs for energy products and a range of other goods, further evidence of rising inflation pressures as the Middle East conflict persists.
Rate Hike Odds
According to CME's FedWatch Tool, traders are pricing in a 16% chance of a rate hike this month and a 92% chance of an increase in December.
Geopolitical Tensions
Egypt is ready to provide Saudi Arabia with any support needed to safeguard its security and stability as attacks by Yemen's Iran-aligned Houthis on the kingdom raise the risk of a broader Middle East conflict.
The takeaway
Gold prices edged higher as investors weighed Federal Reserve rate hike likelihood.
