Gold starts the week higher
Gold prices began the new week with gains, supported by a weaker US dollar and declining oil prices.
Spot gold rose 0.3% to $4,206.01 per ounce, while US gold futures gained the same percentage to reach $4,230.40. The precious metal hit its highest level since October 2 earlier in the session. Expectations that Russia and Ukraine could halt attacks on energy facilities pushed oil prices lower, providing additional support for gold.
Tim Waterer, Chief Market Analyst at KCM Trade, said falling oil prices had eased concerns about inflation and further interest rate hikes. Investors are now focused on key US inflation data scheduled for release this week. The Consumer Price Index (CPI) will be published on Wednesday, followed by the Producer Price Index (PPI) and retail sales figures on Thursday. According to CME FedWatch data, markets are pricing in a 17% probability of a Federal Reserve rate hike in October and an 86% chance of an increase by December.
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