Gold edges higher after sharp selloff, Fed hike bets weigh

Gold recovered modestly on Wednesday after losing almost 3% in the prior session, Business Recorder reported. Spot bullion rose 0.3% to $4,043.62 an ounce by 0303 GMT, while US futures for December delivery advanced 0.5% to $4,051.10. The Tuesday decline had taken spot gold to $4,017.21.

The rebound followed stronger-than-expected US inflation figures and comments from Federal Reserve officials that strengthened expectations of a December rate increase. CME’s FedWatch tool showed traders assigning a 100% chance to a hike, compared with 84% before the inflation data; higher rates can make gold less attractive because it does not pay interest. Silver gained 1.7% to $52.38 an ounce and palladium rose 1.3% to $1,038.38.