Gold steady as stronger dollar and high yields offset waning Fed hike expectations
GLD•GLD•GLD•GLD•Gold prices were nearly unchanged 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.
Spot gold edged 0.1% lower to $4,139.89 per ounce, while U.S. gold futures settled 0.1% lower at $4,156.80. A rising dollar and elevated Treasury yields pressured gold, while weaker-than-expected U.S. economic data reduced expectations of a rate increase in October.
Traders priced a 22% probability of a Fed rate hike in October, down from about 70% the prior week, and an 84% chance of an increase in December. Investors awaited minutes from the September Federal Open Market Committee meeting, due later in the week. Metals Focus expected gold to reach all-time highs in 2027 and forecast an average price of $5,330 per ounce next year.
