Gold edges lower with focus on Fed minutes and rate path clues
GLD•Spot gold slipped 0.3% to $4,150.23 an ounce as investors awaited minutes from the Federal Reserve’s September meeting for clues on the rate path; traders priced in an 85% chance of a rate hike by December.
1. Gold prices slip
Spot gold eased 0.3% to $4,150.23 per ounce, while U.S. gold futures edged 0.2% lower to $4,177.60. Investors were looking to the Fed’s September meeting minutes, due later in the day, for indications of policymakers’ support for further rate increases.
2. Rate outlook in focus
San Francisco Fed President Mary Daly said the need for further hikes depends on whether inflation drivers fade or persist, while Kansas City Fed President Jeff Schmid said rates still need to rise. Recent soft economic data has dampened expectations of an October increase, but traders priced in an 85% chance of a hike by December. Delegates at the London Bullion Market Association’s annual conference forecast gold could reach $5,013 an ounce over the next 12 months.
