Gold prices edged higher on Thursday after touching a two-month low in the previous session, while markets awaited further clarity on the US Federal Reserve‘s interest rate path.
Fundamentals
Spot gold rose 0.4% at $4,127.40 per ounce by 0101 GMT. On Wednesday, prices touched their lowest level since August 5 as a firmer dollar and higher US Treasury yields weighed on the market.
US gold futures for December delivery gained 0.3% at $4,150.60.
Fed policymakers were divided last month over the rationale for raising interest rates, with “some participants” seeing a hike as needed to keep the impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against emerging demand-driven inflation, minutes showed.
Traders see only an 18% chance of a rate hike later this month, but continue to price in an 80% likelihood of a December increase, according to CME’s FedWatch tool. Higher rates diminish the appeal of non-yielding gold.
The global economy is under threat from persistently high energy prices, record public debt and risks from the AI investment boom, International Monetary Fund Managing Director Kristalina Georgieva warned, urging governments to implement protective fiscal and monetary policy measures.
On the geopolitical front, three people have been killed in attacks on Saudi airports, the country’s civil aviation authorities said on Wednesday, as fighting intensified in Yemen between the Iran-aligned Houthis and Saudi-backed government forces.Elsewhere, gold miner Perseus Mining sees strong merger and acquisition activity across the sector but expects dealmaking to remain difficult as companies struggle to agree on valuations amid volatile bullion prices, its chief executive said.
Among other metals, spot silver rose 0.4% to $60.39, platinum added 1.4% to $1,653.88 and palladium climbed 1.4% to $1,141.00.
Data/Events (Gmt)
0900 Germany Overall Comprehensive Risk Q4
0900 France Overall Comprehensive Risk Q4
0900 UK Overall Comprehensive Risk Q4
1230 US Initial Jobless Clm 3 Oct, w/e