Gold slips as dollar gains; investors await Fed minutes for rate clues
GLD•Gold fell 0.8% to $4,130.37 an ounce as the dollar strengthened, with investors awaiting minutes from the Federal Reserve’s September meeting. China’s central bank extended its gold-buying streak to 23 months.
1. Gold edges lower
Spot gold fell 0.8% to $4,130.37 per ounce, while U.S. gold futures dropped 0.7% to $4,157. The dollar index rose 0.3%, making dollar-priced metals more expensive for investors holding other currencies.
2. Fed rate outlook
Investors awaited minutes from the Federal Reserve’s September meeting for clues on policymakers’ views about further rate increases. San Francisco Fed President Mary Daly said the need for hikes depends on whether inflation-driving shocks fade or persist; Kansas City Fed President Jeff Schmid said rates still need to rise further. Traders priced in an 88% chance of a rate hike by December, according to CME’s FedWatch tool.
3. Other metals and reserves
China’s central bank increased its gold purchases in September, extending its buying streak to 23 consecutive months, official data showed. Silver fell 1.9%, platinum lost 1.3% and palladium declined 1.5%. Delegates at an industry conference forecast gold could reach $5,013 an ounce over the next 12 months.
