Gold recovers on cooling oil prices, but rate outlook caps gains

Gold futures rose on Monday, gaining over $20 in Asian trade as softer oil prices eased inflation concerns, while investors positioned ahead of the Federal Reserve?s policy decision on October 27?28. The Fed is widely expected to hold rates steady this week, although persistent price pressures could keep the prospect of a December hike in focus. US PCE inflation data due Thursday will offer fresh clues on the policy outlook, following signs of resilient business demand and firms raising prices in October. Elevated energy costs linked to the Middle East conflict continue to pose an inflation risk, potentially limiting gold?s upside as higher interest rates weigh on non-yielding bullion. MCX December gold futures rose 0.6% to ₹1,42,132 per 10 grams, while international futures gained 0.5% to $4,030.20 per ounce.

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