China's Record Gold Imports Steady Prices as Fed Hikes Less Likely

Gold prices have steadied around $4,150 an ounce after a volatile week, as China's record-breaking gold imports counterbalance the Federal Reserve's hawkish stance. The metal traded at $4,156.91 per troy ounce on Thursday, down 0.6% from Wednesday.

The Fed's preferred inflation gauge, the core Personal Consumption Expenditures index, rose just 0.2% month-on-month in August, with an annual rate of 3.0%. This softer-than-expected print led to a sharp repricing of rate futures, with odds of a Fed hike at the October meeting tumbling from 70% to between 34% and 37%.

Despite this reprieve, ten-year Treasury yields pushed as high as 5.30%, capping any meaningful rebound in bullion. The changed rate outlook has also led investment banks to trim their gold price forecasts, with one major bank revising its target lower due to expectations of no Fed easing before the later part of 2027.