Gold edges higher after hitting a two-month low

Gold prices rose slightly on Thursday after falling to a two-month low the day before, as investors waited for more information about the Federal Reserve's interest rate plans. Spot gold increased by 0.4% to $4,127.40 per ounce by 0101 GMT. Earlier in the week, prices hit their lowest point since August 5 due to the US dollar strengthening and US Treasury yields rising.

Minutes from the previous Federal Reserve meeting showed differing opinions among policymakers on the need for interest rate increases. While some participants believed a rate hike was necessary to prevent rising energy and other price shocks, a more hawkish group argued it was essential to prevent inflation driven by demand. Nevertheless, traders only gave a 18% chance of a rate increase later in the month, but still anticipated an 80% likelihood of a hike in December, according to the CME's FedWatch tool.

The global economy faces challenges from persistently high energy prices, record public debt, and risks stemming from the AI investment boom, warned International Monetary Fund Managing Director Kristalina Georgieva. She urged governments to adopt protective fiscal and monetary policies to mitigate these issues.

On the geopolitical front, three individuals were killed in attacks on Saudi airports, according to the country's civil aviation authorities. Fighting in Yemen has also intensified, with forces aligned with Iran battling Saudi-backed government forces.

In other news, gold miner Perseus Mining reported strong merger and acquisition activity across the sector but warned that dealmaking could remain challenging due to difficulties agreeing on valuations amidst volatile gold prices. The CEO of the company made this observation. Among other metals, spot silver rose by 0.4% to $60.39, platinum increased by 1.4% to $1,653.88, and palladium climbed by 1.4% to $1,141.00.