Gold Edges Lower On Interest-rate Concerns

(RTTNews) - Gold traded lower on Friday and was on course for a second consecutive monthly loss on concerns over rising crude oil prices and expectations of a Federal Reserve interest-rate rise in December.

Spot gold fell 0.7 percent to $3,992.71 an ounce after dropping more than 1 percent in the previous session. U.S. gold futures were down 0.7 percent at $4,001.87.

After a stronger September U.S. inflation reading, traders currently price in about a 75 percent chance of a rate hike in December, according to CME's FedWatch Tool.

A raft of economic data released on Thursday clouded the outlook for inflation and interest rates. Third-quarter GDP growth came in at an annualized 3.4 percent, surpassing analyst expectations and marking the fastest pace in a year.

Consumer spending rose in September as inflation stayed high at 3.6 percent on a year-on-year basis, marking the fastest pace since May.

The core PCE price index, the Fed's preferred inflation gauge, climbed 3.1 percent, matching expectations after holding at 3.0 percent for three consecutive months.

Initial jobless claims stayed near a 57-year low last week, signaling labor market resilience.

While AI jitters dented the dollar's appeal, the yen headed for a third daily gain after the Bank of Japan kept interest rates unchanged as expected but revised up its inflation forecast and indicated it remains prepared to tighten policy further if inflation risks intensify.

Brent crude futures jumped nearly 2 percent toward $113 a barrel and headed for another weekly gain amid Houthi attacks on Saudi infrastructure and fears that the Trump administration could resume strikes against Iran after the November 3 midterm elections.

According to reports by the Wall Stret Journal and Axios, a senior commander had briefed President Donald Trump on potential military options for a possible resumption of major combat operations on Thursday.

In an update issued today, the United Kingdom Maritime Trade Operations (UKMTO) said that a tanker transiting the Strait of Hormuz was attacked with two explosive devices attacked to its hull by a small boat, causing a fire in the engine room that temporarily disabled the vessel. It was not immediately clear who was behind the attack.

On Thursday, the Houthis said they had attacked several sites in Saudi Arabia, including Ras Taura oil refinery, the largest in the kingdom, the Rabigh refinery, and an Aramco production facility in Abqaiq, as well as King Khalid International Airport in Riyadh and King Fahd International Airport in Dammam.