19.10.202110:34:00UTC+00Gold Climbs As Fed Rate Hike Bets Ease

Gold prices rose on Tuesday, as a drop in oil prices and disappointing data from China and the United States soothed some of the fears about inflation and tightening of monetary policy.

Spot gold climbed 0.8 percent to $1,779.76 per ounce, while U.S. gold futures were up 0.8 percent at $1,780.55.

Bond yields declined and the dollar index slid to a three-week low after overnight data showed that U.S. industrial production fell unexpectedly in September.

Production at U.S. factories fell by the most in seven months in the month as an ongoing global shortage of semiconductors depressed motor vehicle output, providing further evidence that supply constraints were hampering economic growth.

As Fed rate hike bets ease, money markets are raising wagers for policy normalization elsewhere, especially in Britain.

On the economic front, U.S. building permits and housing starts for September are set for release in the New York session.