Gold rose to its highest since 2 October on Monday, supported by a softer dollar and cheaper oil, as traders waited for U.S. inflation data on Wednesday. Spot gold gained 0.3% to $4,206.01 an ounce by 02:53 GMT and December futures added 0.3% to $4,230.40, Reuters reported. Silver climbed 0.9% to $61.10. Tim Waterer of KCM Trade said softer oil on the reported truce and a subdued dollar had given gold a window of opportunity to the upside, easing immediate inflation and rate anxiety. CME FedWatch priced a 17% chance of an October rate rise and 86% by December. Prices cooled later in the session: spot gold dipped to a $4,175 low as Fed tightening expectations and mixed geopolitical headlines capped havens, Newsquawk noted, with silver paring gains to $60.66.
Oil prices an unconfirmed ceasefire
U.S. President Donald Trump said on Sunday that an energy ceasefire between Russia and Ukraine was effective immediately. A White House official told Axios the deal covers attacks on oil refineries, with power grids possibly next. Moscow had not confirmed it, and Kyiv reported fresh Russian strikes on power plants within hours, Vantage Markets reported. Brent fell 1.1% to $103.50 and WTI 1.2% to $90.73 early in the day; Brent went on to settle at $104.61, down 0.3%, and WTI at $91.38, according to Finobird's market wrap. Moscow cleared 500,000 tons of diesel for export on Saturday with no shipping timeline given. Brent remains below its recent $109.97 top as the Iran conflict keeps a war premium in the price, with Tehran repeating that the Strait of Hormuz stays shut until its conditions are met. See Friday's rebound to $4,195 and last week's settle at $103.53.