Gold rises as oil falls while Fed officials push for a hike
Gold rose as oil fell, while three Fed officials pushed for a rate increase and CME FedWatch showed about a 73% chance of a December hike.
Gold rose as oil prices fell, while three Federal Reserve officials said they support another increase in interest rates, according to Reuters.
The CME FedWatch tool showed about a 73% chance of a rate increase in December, which keeps the cost of holding the precious metal relatively high.
Silver rose 1.8% to $49.97 per ounce, platinum gained 0.1% to $1,432.63, and palladium was steady at $976.31.
Kyle Rodda of Capital.com described the move as a rebound after the selloff, while Ole Hansen of Saxo warned that technical selling and liquidity concerns still weigh on gold.
What do these terms mean?
Federal Reserve: The US central bank responsible for monetary policy and interest rates in the United States.
FedWatch: A CME Group tool that gauges market expectations for the probability of a rate change at upcoming meetings.
Technical selling: Selling driven by the breach of certain price levels or the activation of automated orders, not by a change in fundamentals.
Liquidity: The ease of buying or selling an asset without a large change in its price, which usually declines in periods of stress.
Platinum and palladium: Two precious metals used in industry, jewellery and catalytic converters, trading at prices independent of gold.
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