Gold steadied near $4,000 an ounce, on track for a second monthly loss as energy-led inflation raised the prospects for a US rate increase before year-end. Bullion was little changed after shedding 1.1% in the previous session. The Federal Reserve left the door open for an interest-rate hike before the end of the year to rein in stubborn inflation, and data released Thursday showed a 0.5% rise in the US personal consumption expenditures price index last month — the most since March.
The precious metal has declined more than 3% in October as concerns around renewed fighting in the Middle East keep energy prices elevated. Oil rose on signs that the US may resume military strikes against Iran after next week's midterm elections. Gold also remains vulnerable to broader equity liquidations. Technology stocks sold off for a second straight session as another round of disappointing earnings fueled a rotation out of the artificial intelligence trade, with heavy spending raising doubts about returns from those investments.
An AI-led stocks rout last week helped drag bullion to the lowest since July, as investors sold to cover losses in equities. Since then, gold has wavered around the $4,000-an-ounce threshold, finding some support from Chinese households and other long-term investors buying the dip. Spot gold fell 0.2% to $4,012.47 an ounce at 8:29 a.m. in Singapore. Silver slid 0.4% to $51.94 an ounce, and is down about 14% so far this month. Platinum and palladium also edged lower. The Bloomberg Dollar Spot Index slipped 0.1%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing