Gold ticks up as investors weigh Fed path, mounting debt concerns
GLD•Gold rose 0.3% to $4,124.50 an ounce on Thursday after reaching a two-month low in the previous session, as investors weighed uncertainty over the Fed’s rate path and concerns about US debt.
1. Gold edges higher
Spot gold rose 0.3% to $4,124.50 per ounce by 10:05 a.m. EDT on Thursday, after hitting its lowest level since August 5 on Wednesday. December US gold futures gained 0.2% to $4,148.90.
2. Fed path remains uncertain
Minutes showed Fed policymakers were divided last month over the rationale for raising rates. Governor Christopher Waller said additional hikes would likely be needed but left open the possibility of an October pause. Traders saw a 21% chance of an October hike and an 88% chance of a December increase.
3. Debt concerns support gold
The dollar and 10-year Treasury yields were elevated for a second straight session. WisdomTree commodity strategist Nitesh Shah said concern about rising debt could favor gold, while noting that uncertainty over the Fed’s path was making the gold market more volatile.
