Gold edges higher on softer oil; Fed rate outlook in focus

Gold prices edged up on Monday, with spot gold rising 0.3% to $4,175.60 per ounce by 0259 GMT, according to Business Recorder. US December futures gained 0.4% to $4,196.40 as cheaper oil lent support. Investors were also weighing the chance of a Fed rate increase later this year and watching for new signals on the central bank's policy path.

Tim Waterer, chief market analyst at KCM Trade, said the metal was responding positively to softer oil from an inflation perspective. He added that a longer slide in oil or a clearer fall in yields would be the most helpful drivers for gold, since both would reduce inflation and interest rate worries. Oil slipped after President Donald Trump set aside sanctions and tariffs on Russia, a step that could boost Russian fuel shipments abroad.

US import prices rose more than expected in September, driven by higher energy costs and other goods, pointing to firmer inflation pressure as the Middle East conflict continues. Markets are now waiting for the Federal Open Market Committee meeting and the Personal Consumption Expenditures data due next week. Data from CME's FedWatch Tool puts the chance of a hike this month at 16%, and the likelihood of a rise in December at 92%. Silver added 0.9% to $57.54 an ounce, while platinum rose 0.7% to $1,642.29 and palladium advanced 1.5% to $1,129.13.