Gold edges up after hitting 2-month low as markets weigh Fed rate path
GLD•Spot gold rose 0.3% to $4,122.12 an ounce after touching its lowest level since August 5 in the previous session. Fed policymakers were divided over the rationale for raising rates, while traders priced in an 85% chance of a December hike.
1. Gold prices recover
Spot gold rose 0.3% to $4,122.12 per ounce by 1128 GMT, after hitting a two-month low in the previous session. December U.S. gold futures were little changed at $4,146.60.
2. Fed rate outlook
Minutes from the Fed’s September meeting showed policymakers divided over the rationale for raising rates. Traders saw a 21.6% chance of an October hike and an 85% chance of a December increase. Fed Governor Christopher Waller said additional hikes would likely be needed, while leaving open the possibility of an October pause.
3. Other metals and shipping
Silver fell 2.2% to $58.80 an ounce, while platinum rose 1.0% and palladium gained 0.7%. Vessel transits through the Strait of Hormuz fell to their lowest level in more than two months after tanker attacks in the waterway reached their highest level last week since the start of the Middle East war.
