As the storm tracked to the east of the Bahamas, a curve to the north began, at which time an anticyclone developed atop the cyclone. This subsequently allowed Gladys to rapidly intensify into a Category 4 hurricane, reaching maximum sustained winds of on October 2. Thereafter, Gladys began to weaken and passed very close to Cape Race, Newfoundland before merging with a large extratropical cyclone the next day. Effects from the system along the East Coast of the United States were minimal, although heavy rainfall and rough seas were reported. In Newfoundland, strong winds and light precipitation were observed.