Gold holds above $4,000 on oil pullback

Gold traded higher on Monday, with spot prices up 0.24% at $4,004.43 an ounce by 11:25 am PST, Mettis Global reported. The rise came as weaker oil prices eased inflation concerns and investors prepared for the US Federal Reserve’s policy decision later this week.

Oil retreated after reaching close to six-month highs late last week, although attacks on Saudi Arabia kept supply risks in view. Markets generally expect the Fed to leave rates unchanged on October 28, while the implied chance of a December increase is 75%; US PCE inflation data is due the following day. Silver gained 0.6% to $54.19 an ounce, platinum was steady at $1,551.31, and palladium rose 0.6% to $1,050.50.