Gold down 1% as dollar gains; Fed minutes in focus
GLD•Spot gold fell 0.98% to $4,122.73 an ounce as the U.S. dollar rose, with investors awaiting minutes from the Federal Reserve’s September meeting. Silver, platinum and palladium each fell more than 2%.
1. Dollar weighs on gold
Spot gold fell 0.98% to $4,122.73 per ounce by 0905 GMT, while U.S. gold futures for December delivery fell 0.91% to $4,149. The dollar index rose 0.4%, making gold more expensive for holders of other currencies.
2. Fed policy in focus
Investors awaited minutes from the Fed’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. Markets largely expect the Fed to hold rates in October, while pricing in an 86% chance of a December hike.
3. Other metals and demand
Silver fell 2.2% to $60.3638 per ounce, platinum slipped 3.0% to $1,650.45, and palladium lost 2.7% to $1,140.89. China’s central bank extended its gold-buying streak to 23 consecutive months in September. Delegates at the London Bullion Market Association’s annual conference forecast gold could reach $5,013 an ounce over the next 12 months.
