Gold rises as oil eases ahead of Fed rate decision
Spot bullion gained 0.4% to US$4,009.87 per ounce after recording its sharpest weekly decline since June.
Gold advanced on Oct 26 as falling oil prices eased inflation worries, with investors turning their attention to the Federal Reserve's policy meeting on Oct 28. At 0342 GMT, spot bullion stood at US$4,009.87 per ounce, up 0.4%.
The gain followed a 4% weekly loss recorded on Friday, the largest since June. In the preceding session, gold had touched its weakest level since mid-July. December-delivery US gold futures climbed to US$4,023.50, a rise of 0.4%.
Kyle Rodda, senior financial market analyst at Capital.com, attributed the rebound mainly to relief from cheaper oil. He said positioning ahead of the Fed decision could limit gains, while rate expectations and geopolitical risks would continue to influence gold.
CME's FedWatch Tool showed traders broadly anticipating no rate change at the meeting, with the probability of a December increase at 75%. Investors were also awaiting US personal consumption expenditures data, an inflation measure monitored by the Fed.
Other precious metals also held steady or advanced. Silver traded at US$54.19 per ounce after gaining 0.6%, while palladium rose by 0.6% to reach US$1,050.50. Platinum was little changed at US$1,551.31.
