Gold steadies as traders weigh inflation and Fed path for rates
Bullion is trading around US$4,375 an ounce, after posting a moderate gain the week before.
Gold steadied at around US$4,375 (S$5,580) an ounce as traders considered the risks of persistent inflation and the Federal Reserve's upcoming interest rate policies following its first hike since 2023, according to wire reports. The Federal Reserve unanimously raised interest rates by a quarter percentage point at its meeting on September 15-16 to help combat inflation that has remained above its 2 percent target for over five years.
Fed policymakers, including Minneapolis Fed President Neel Kashkari, Austan Goolsbee, and New York Fed President John Williams, were scheduled to provide public commentary throughout the week. Inflation remains a concern beyond oil prices, with high energy costs bolstering expectations for prolonged higher interest rates, which could negatively impact non-yielding assets like gold, said an analyst at Global X ETFs.
Markets were encouraged by Fed Chair Kevin Warsh's stance on rate increases, despite President Donald Trump's calls for lower rates. Spot gold remained stable at US$4,378.10 an ounce, while silver, platinum, and palladium saw slight increases. The Bloomberg Dollar Spot Index remained stable after a 1 percent rise the previous week.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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