Gold Dips as Investors Eye Fed Minutes for Rate Hike Clues

Gold prices dipped on Wednesday as investors awaited the release of minutes from the Federal Reserve's September meeting, seeking clarity on future rate hikes. Spot gold fell 0.3% to $4,150.23 per ounce, while US gold futures declined 0.2% to $4,177.60.

Analysts expect gold to remain stable with a slight downward bias, pending insights from the Federal Open Market Committee (FOMC) minutes. Frank Walbaum of Naga.com noted that the minutes could reshape expectations for future rate hikes, influencing gold prices alongside movements in Treasury yields, the dollar, or oil prices.

Recent remarks from Fed officials have emphasized the central bank's focus on curbing inflation. San Francisco Fed President Mary Daly suggested that further rate hikes depend on whether inflationary pressures persist, while Kansas City Fed President Jeff Schmid argued that rates need to rise further. Despite softer economic data, traders still see an 85% chance of a rate hike by December.

Meanwhile, delegates at the London Bullion Market Association's conference in Sorrento, Italy, predicted gold could reach $5,013 an ounce over the next year. Other precious metals saw mixed movements, with silver dropping 1%, platinum rising 0.2%, and palladium falling 0.3%.