Gold edges up as traders await remarks from Fed officials

Gold prices inched up today, Oct. 14, thanks to US inflation data released last week, which boosted investor sentiment for a Federal Reserve interest-rate cut at the forthcoming policy meeting.

Bullion for December delivery climbed by 0.14% to $2,680.90 an ounce at 9:26 am Makkah time, with spot prices also up 0.37%, or $9.80, to $2,665.5 per ounce.

However, the yellow metal’s gains were offset by a slight hike of 0.1% in the US dollar index, which gauges the greenback's strength against a basket of six currencies, to 103 points, hovering near the two-month high recorded last week.

According to the CME’s FedWatch Tool, traders are now pricing in an 89% chance of a 25-basis-point rate cut at the November meeting, compared with an 11% probability of a no change.

Markets are awaiting remarks from Fed officials later in the day for further cues on the future path of possible rate cuts. Further, US retail sales data is due out on Oct. 17.