Gold falls 0.7% for the week as oil gains outweigh weaker dollar
Spot gold settled at $US4,165.40 an ounce on Friday, Investing.com reported, as traders reduced bets on a US rate rise this month.
Gold prices fell over the week, as higher oil prices slightly outweighed a weaker US dollar and a rally in US government bonds, Investing.com reported.
Spot gold slipped 0.1% on Friday 16 October to settle at $US4,165.40 an ounce. Spot and futures prices each fell 0.7% over the week, Investing.com said.
Gold rose 1.6% on Thursday on demand for safe-haven assets, Reuters reported, during a sell-off in technology shares. That day, a rally in US Treasuries pushed yields lower.
US inflation data during the week showed consumer prices up 3.7% in the year to September and producer prices up 6.3%, the largest annual rise in producer prices since December 2022, according to Investing.com.
Bets on a Federal Reserve rate rise this month increased after those reports. They fell back on Friday after Fed chair Kevin Warsh spoke at the IMF and World Bank meetings in Bangkok without signalling the bank’s next move. Investing.com said the CME FedWatch tool put the chance of a quarter-point rise this month at about 17%, down from nearly 28% the previous day. Gold pays no interest, and lower rates tend to support its price.
Over the same week, Brent crude rose 4.8% and US West Texas Intermediate jumped 10.9%, Investing.com reported, amid concerns about supply from the Middle East.
The Fed’s next policy meeting is scheduled for 27 and 28 October, according to the central bank’s calendar.
Sources
- Gold prices slip for the week as oil gains offset weaker dollar, U.S. bond rally · Investing.com
- Asian stocks rebound after tech sell-off; Indonesia market plunges 11% · Reuters (via Business Standard)
- Meeting calendars and information · Federal Reserve
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