Gold starts the week higher
Gold prices opened higher on Monday, October 19, amid expectations that declining oil prices could ease global inflationary pressures.
Spot gold rose 0.3% to $4,175.60, while US gold futures for December delivery gained 0.4% to $4,196.40. Tim Waterer, Chief Market Analyst at KCM Trade, said falling oil prices were improving the inflation outlook, providing support for gold prices.
Market attention has shifted to the Federal Reserve's (Fed) interest rate meeting next week and the upcoming Personal Consumption Expenditures (PCE) inflation report. According to CME FedWatch data, investors are pricing in a 16% probability of an interest rate hike in October and a 92% probability in December. Other precious metals also recorded gains. Silver rose 0.9% to $57.54, platinum climbed 0.7% to $1,642.29, and palladium advanced 1.5% to $1,129.13.
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