Gold slips as dollar gains; investors await Fed minutes for rate clues
GLD•Spot gold fell 0.6% to $4,138.34 an ounce as the dollar strengthened, with investors awaiting minutes from the Fed’s September meeting. Traders priced in an 87% chance of a rate hike by December.
1. Gold prices ease
Spot gold fell 0.6% to $4,138.34 an ounce by 0451 GMT, while U.S. gold futures dropped 0.5% to $4,164.70. The dollar index rose 0.2%, making gold priced in dollars more expensive for investors holding other currencies.
2. Investors await Fed minutes
Investors awaited minutes from the Federal Reserve’s September meeting for clues on policymakers’ support for further rate increases. San Francisco Fed President Mary Daly said the need for more hikes hinges on whether factors pushing up inflation fade or persist, while Kansas City Fed President Jeff Schmid said rates still need to rise. Traders priced in an 87% chance of a hike by December.
3. Gold forecast and other metals
Delegates at the London Bullion Market Association’s annual conference forecast gold could reach $5,013 an ounce over the next 12 months. Silver fell 1.5% to $60.79 an ounce, platinum eased 0.3% to $1,697.45, and palladium lost 1% to $1,160.23.
