Gold Rises as Fed Officials Signal Rate Hike Pause
Gold prices rose slightly while Brent crude dropped 3 percent amid shifting Federal Reserve signals and European Union efforts to stabilize fuel supplies.
Spot gold prices increased 0.2 percent to $4,185.82 an ounce on Friday as market volatility eased. Despite the daily gain, the metal remained on track for its second consecutive weekly decline ahead of a monthly jobs report from the U.S. Department of Labour.
Federal Reserve System officials Neel Kashkari and Philip Jefferson suggested that a rate hike at the October 27-28 meeting might not be urgent, causing bond yields to retreat while the dollar maintained a 17-month high. Kashkari stated he is unsure if the next hike should occur during the October meeting, and Jefferson saw no urgency for the central bank to act again.
In energy markets, Brent crude futures fell more than 3 percent toward $99 a barrel. This decline followed recovering supplies in the Middle East and a French proposal to release European Union fuel and crude stockpiles to prevent a U.S. diesel export ban. Meanwhile, Eurostat reported that Eurozone inflation accelerated to 3.8 percent in September, surpassing expectations due to increased energy and food costs.
