Gold prices slipped on Wednesday as investors awaited the US Federal Reserve’s September meeting minutes for clues on interest rate moves. Spot gold fell 0.3% to $4,150.23 per ounce by 0145 GMT, while US gold futures edged down 0.2% to $4,177.60.
The Federal Open Market Committee minutes, due later in the day, are expected to clarify the Fed’s stance on further rate hikes. Frank Walbaum, a market analyst at Naga.com, said the yellow metal would likely remain stable with a mild downward bias. He added that the minutes could reshape market expectations about upcoming hikes, especially if they affect Treasury yields, the dollar, or oil prices amid Middle East developments.
Recent statements from Fed officials reflect a persistent push to tame inflation. San Francisco Fed President Mary Daly said the need for more rate increases depends on whether inflationary pressures fade. Kansas City Fed President Jeff Schmid voiced a clearer message, stating rates still need to rise to control inflation. Despite soft economic data reducing the likelihood of an October hike, traders still price in an 85% chance of a rate increase by December.
Higher interest rates typically draw investors to assets with yields, putting pressure on gold, which does not generate income. This dynamic explains the recent dip in prices despite geopolitical tensions.
At the London Bullion Market Association’s annual conference in Sorrento, Italy, delegates forecast gold could climb to $5,013 an ounce within a year. This figure contrasts with the current market’s cautious stance.
In other metals, spot silver dropped about 1% to $61.12, platinum rose 0.2% to $1,704.25, and palladium fell 0.3% to $1,168.20.
Meanwhile, US Vice President JD Vance told Reuters in an exclusive interview that Iran must make a “meaningful” cut in its nuclear enrichment capacity to meet US demands and end the seven-month conflict. His remarks come as tensions continue to influence global markets, including commodities like gold.
The minutes from the Fed’s September meeting will likely shape the immediate trajectory of gold, as investors parse the degree of support among policymakers for more rate hikes.
According to Joy Online.
