Gold prices edge higher after two-month low

Gold prices inched upwards on Thursday following a two-month low the previous day, as traders awaited further guidance on the US Federal Reserve's interest rate trajectory. Spot gold climbed 0.4% to $4,127.40 an ounce by 0101 GMT, marking a rebound from its lowest point since August 5. US gold futures for December delivery also gained 0.3% to $4,150.60.

Minutes released last month revealed Federal Reserve policymakers were divided on whether to hike interest rates, with some arguing it was necessary to mitigate the impact of energy and other price shocks, while a more hawkish subset viewed it as crucial to curb potential demand-driven inflation. Traders currently view only an 18% chance of a rate hike later this month, yet they still price in an 80% likelihood of a December increase according to 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, International Monetary Fund Managing Director Kristalina Georgieva cautioned. Governments are urged to implement protective fiscal and monetary policy measures.

On the geopolitical front, three individuals lost their lives in attacks on Saudi airports, as fighting escalated between Iran-aligned Houthis and Saudi-backed government forces in Yemen. Elsewhere, gold miner Perseus Mining reported strong merger and acquisition activity within the sector but expects dealmaking to remain challenging due to difficulties in agreeing on valuations amidst volatile bullion prices.

Among other metals, spot silver rose 0.4% to $60.39, platinum increased 1.4% to $1,653.88, and palladium climbed 1.4% to $1,141.00.