Gold edges up after hitting 2-month low as markets weigh Fed rate path
GLD•Spot gold rose 0.3% to $4,122.99 an ounce after hitting its lowest level since August 5, as investors assessed the Fed’s September meeting minutes. Traders priced in an 85% chance of a December rate hike, while silver fell 2.2%.
1. Gold prices rebound
Spot gold rose 0.3% to $4,122.99 an ounce by 0916 GMT on Thursday after touching a two-month low in the previous session. December U.S. gold futures added 0.18% to $4,147.90.
2. Fed minutes divide policymakers
Fed policymakers were divided over the rationale for raising rates in September, minutes showed. Some saw a hike as needed to contain energy and other price shocks, while a more hawkish core viewed it as necessary to guard against emerging demand-driven inflation. Traders saw a 21.6% chance of an October hike and an 85% probability of a December increase.
3. Other metals and shipping
An analyst said a stronger dollar and Treasury yields could weigh on gold, while a sustained break below $4,100 could open a path toward $4,000. Vessel transits through the Strait of Hormuz fell to their lowest in more than two months after tanker attacks reached their highest level last week since the start of the Middle East war. Spot silver fell 2.2% to $58.8476, while platinum rose 1.6% and palladium gained 0.8%.
