Gold down 1% as dollar gains; Fed minutes in focus
GLD•Spot gold fell 1.1% to $4,119.01 an ounce as the U.S. dollar rose 0.5%, with investors awaiting minutes from the Fed’s September meeting. China’s central bank extended its gold-buying streak to 23 months.
1. Dollar weighs on gold
Spot gold fell 1.1% to $4,119.01 per ounce by 1127 GMT, while U.S. gold futures declined 1% to $4,145.50. The dollar index rose 0.5%, making gold more expensive for holders of other currencies. Investors awaited the minutes of the Federal Reserve’s September meeting for clues on support for further rate hikes. Kansas City Fed President Jeff Schmid said rates still need to rise to bring inflation down, while San Francisco Fed President Mary Daly said the decision would depend on whether inflationary pressures fade or persist.
2. Gold demand and forecasts
China’s central bank increased its gold purchases in September, extending its buying streak to 23 consecutive months, official data showed. Delegates at the London Bullion Market Association’s annual conference forecast gold could reach $5,013 an ounce over the next 12 months. Silver fell 2.6%, platinum declined 3.9% and palladium lost 2.9%.
