Gold holds firm as oil gains stoke inflation concerns

Gold traded steadily on Wednesday, with spot prices later showing a 0.42% gain to $4,029.31 an ounce at 11:52 am PST, Mettis Global reported. A rise in crude prices renewed inflation concerns, while investors waited for the US Federal Reserve’s interest-rate announcement scheduled for 1800 GMT.

Oil advanced after a strike at a Saudi Arabian refinery raised concerns about possible supply interruptions in the Middle East, CNBC reported. Higher energy costs could reinforce the case for keeping interest rates elevated, reducing the appeal of gold, which pays no interest. Traders generally expect no change at this meeting, although the FedWatch Tool indicated about 84% odds of a December rate increase. Investors are also watching Thursday’s Personal Consumption Expenditures inflation data; silver fell 0.6% to $54.06 an ounce and platinum slipped 0.4% to $1,533.64, while palladium rose 0.5% to $1,030.80.