Gold slips as US dollar gains; investors await Fed minutes for rate clues
Spot gold falls 0.6% to US$4,138.34 per ounce by 0451 GMT
Gold prices declined on Wednesday (Oct 7) as the US dollar strengthened, with investors eagerly anticipating the minutes from the Federal Reserve's September meeting for insights into potential future rate hikes. Spot gold slipped 0.6% to $4,138.34 per ounce, while US gold futures dropped 0.5% to $4,164.70. The US Dollar Index increased by 0.2%.
Minutes from the latest Federal Open Market Committee meeting are expected later in the day, potentially revealing the Fed's stance on monetary policy and the extent of support for additional rate increases. Market analyst Frank Walbaum predicted that gold would maintain a "mild downside bias" with the yellow metal's value influenced by subsequent shifts in Treasury yields, the US dollar, or oil prices stemming from potential Middle East developments.
Fed officials' recent comments reinforced the central bank's dedication to curbing inflation, with some policymakers suggesting further rate hikes may be necessary. Despite recent economic data indicating a slowdown in inflation, traders still believe there is an 87% probability of a rate increase by December. Meanwhile, gold experts at the London Bullion Market Association's annual conference projected a potential price of $5,013 per ounce over the next year.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Stocks flat as investors await signals from the Fed news.rthk.hk
