Gold pauses decline after two-month low as traders weigh US Fed move
GLD•Gold was little changed at $4,116.67 an ounce after hitting a two-month low, as investors assessed the chance of another Federal Reserve rate hike. Traders priced in a 19% chance of an October hike and an 86% chance of a December increase.
1. Gold steadies
Spot gold was little changed at $4,116.67 per ounce by 0625 GMT, after reaching its lowest level since August 5 in the previous session. US gold futures were flat at $4,140.70. A firmer dollar and higher US Treasury yields weighed on prices on Wednesday.
2. Fed rate outlook
Federal Reserve policymakers were divided over the rationale for raising rates, minutes showed. Traders saw a 19% chance of a hike later in October and priced in an 86% likelihood of an increase in December. Higher rates diminish the appeal of non-yielding gold.
3. Other metals and risks
The IMF managing director warned that persistently high energy prices, record public debt and risks from the AI investment boom threaten global growth. Spot silver fell 1.9% to $59.01, while platinum rose 1.6% to $1,657.18 and palladium gained 1.1% to $1,136.80.
