Gold edges higher after hitting a two-month low
GLD•Spot gold rose 0.4% to $4,127.40 per ounce after touching its lowest level since August 5 in the previous session. Traders saw an 18% chance of a US rate hike later this month and an 80% likelihood of a December increase.
1. Gold prices rebound
Spot gold rose 0.4% to $4,127.40 per ounce by 0101 GMT, while US December gold futures gained 0.3% to $4,150.60. Gold touched a two-month low on Wednesday as a firmer dollar and higher US Treasury yields weighed on prices.
2. Rate outlook in focus
Markets awaited further clarity on the Federal Reserve’s interest rate path. Minutes showed policymakers were divided last month over whether raising rates was warranted. Traders priced in an 18% chance of a rate hike later this month and an 80% likelihood of a December increase; higher rates diminish the appeal of non-yielding gold.
3. Other market developments
The IMF managing director warned that persistently high energy prices, record public debt and risks from the AI investment boom threaten the global economy. Separately, Saudi civil aviation authorities said three people were killed in attacks on Saudi airports as fighting intensified in Yemen. Silver rose 0.4%, platinum gained 1.4% and palladium climbed 1.4%.
