Gold lingers near one-year low as Fed hike expectations firm
GLD•Gold rose 0.5% to $3,894.89 an ounce in early Asian trading but remained near its lowest level since October 2025. Traders priced in about a 75% chance of a Federal Reserve rate hike in December.
1. Gold remains under pressure
Spot gold rose 0.5% to $3,894.89 per ounce by 0042 GMT, but hovered near its lowest level since October 2025, touched in the previous session. U.S. gold futures for December delivery gained 0.1% to $3,903.90.
2. Rate expectations weigh
Three Federal Reserve officials on Friday argued for further rate increases to combat high inflation, after the central bank left short-term borrowing costs steady at last week’s meeting. U.S. inflation accelerated in September, and traders priced in about a 75% chance of a December rate hike. Higher interest rates raise the opportunity cost of holding non-yielding bullion.
3. Demand stays subdued
Physical gold demand in key Asian markets remained subdued last week. Indian buyers delayed purchases in anticipation of further price declines, while demand in China remained muted.
