Gold Extends Gains as Rate-Hike Fears Ebb
Gold prices continued their upward trend on Tuesday, rising for a third consecutive session. The increase was attributed to easing concerns about a US interest rate hike next month. Investors are awaiting the release of the Federal Reserve's meeting minutes, which could provide more insight into the central bank's monetary policy direction.
The spot price of gold reached $4,431.09 per ounce, representing a 0.4% increase from the previous day. US gold futures for December delivery also rose by 0.3% to $4,487.70. The subdued performance of the US dollar made dollar-priced metals less expensive for holders of other currencies.
The Federal Reserve's decision to keep interest rates unchanged next month and through year-end was largely expected, according to a Reuters poll. However, market pricing for a September rate hike has shifted, with a near-65% chance now indicating a hold rather than a quarter-point increase. This change in sentiment was influenced by the recent job losses, lower-than-expected consumer price inflation, and weaker retail sales.
In related news, Iran announced its intention to adopt a 'fully offensive' military posture due to stalled negotiations for a permanent end to the war with the US. Meanwhile, other metals such as silver, platinum, and palladium also experienced increases in their spot prices.