Gold Prices Steady as Investors Await Fed Minutes

Gold prices remained steady on Wednesday as investors awaited the release of the US Federal Reserve's meeting minutes for insights into future monetary policy. Spot gold was trading at $4,159.62 per ounce by 0038 GMT, while US gold futures for December delivery were holding at $4,187.30. The focus was on the Fed's September meeting minutes, which were expected to provide clues about the central bank's stance on interest rates.

San Francisco Fed President Mary Daly expressed support for the recent interest-rate hike due to rising inflation risks but indicated that further hikes would depend on whether inflationary pressures persist or subside. Kansas City Fed President Jeff Schmid emphasized the need for additional rate hikes to curb inflation, despite the economic slowdown caused by higher long-term yields. Traders currently see an 85% chance of another rate hike in December, though expectations for an October increase have diminished due to recent soft economic data.

In a high-interest-rate environment, investors typically prefer yield-generating assets over gold. However, delegates at the London Bullion Market Association's annual gathering in Sorrento, Italy, predicted that gold prices could reach $5,013 per troy ounce over the next 12 months. Among other precious metals, spot silver fell 0.6% to $61.32, platinum rose 0.4% to $1,707.65, and palladium dropped 0.1% to $1,170.75.