Gold steady as stronger dollar and high yields offset waning Fed hike expectations
GLD•Gold was little changed as a stronger dollar and elevated U.S. Treasury yields offset reduced expectations of a Federal Reserve rate hike this month. Traders priced a 22% chance of an October hike and an 84% chance of a December increase.
1. Gold prices steady
Spot gold edged 0.1% lower to $4,137.79 per ounce, while U.S. gold futures for December delivery added 0.1% to $4,166. A stronger dollar and 10-year Treasury yields near two-decade highs pressured prices, while reduced expectations of an October Fed rate hike provided support.
2. Rate outlook and forecast
Traders priced a 22% probability of an October rate hike, down from about 70% the previous week, and an 84% chance of an increase in December. Investors awaited minutes of the September Federal Open Market Committee meeting, due Wednesday. Metals Focus expects gold to reach all-time highs in 2027 and predicted an average price of $5,330 per ounce next year.
