Gold Holds Steady Ahead of Fed Minutes Release

Gold prices held steady on Wednesday, October 7, 2026, as investors awaited the release of minutes from the US Federal Reserve’s September meeting for insights into future monetary policy. Spot gold was trading at US$4,159.62 per ounce, while US gold futures for December delivery were priced at US$4,187.30.

Market attention is focused on the Fed’s next moves, particularly after recent soft economic data reduced expectations of an October rate hike. However, traders still see an 85 per cent chance of a rate increase in December. High interest rates typically make gold less attractive to investors, as they favor yield-generating assets over the non-interest-bearing metal.

Federal Reserve officials have expressed differing views on the need for further rate hikes. Mary Daly, president of the San Francisco Fed, supported the September rate hike but indicated that additional hikes would depend on whether inflationary pressures persist. Jeff Schmid, president of the Kansas City Fed, argued that further rate increases are necessary to curb inflation, despite the impact of higher long-term yields on economic activity.

Delegates at the London Bullion Market Association’s annual gathering predicted that gold prices could reach US$5,013 per troy ounce over the next 12 months. Meanwhile, other precious metals saw mixed movements, with spot silver falling 0.6 per cent to US$61.32, platinum rising 0.4 per cent to US$1,707.65, and palladium declining 0.1 per cent to US$1,170.75.