Gold ticks up as investors weigh Fed path, mounting debt concerns
GLD•Gold rose 0.4% to $4,126.78 an ounce after falling to its lowest level since August 5 in the previous session. Investors weighed the Fed’s uncertain rate path against concerns over US debt.
1. Gold rebounds from low
Spot gold rose 0.4% to $4,126.78 per ounce by 2:16 p.m. EDT on Thursday, after touching its lowest level since August 5 on Wednesday. December US gold futures settled 0.4% higher at $4,157.
2. Fed rate path 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 17% chance of an October hike and an 81% chance of an increase in December.
3. Debt concerns support gold
The dollar and 10-year US Treasury yields remained elevated for a second session. WisdomTree commodity strategist Nitesh Shah said concerns about rising indebtedness could favor gold, while noting that the Fed minutes pointed to no predetermined rate path. Higher rates dim the appeal of non-yielding gold.
