Williams' words give Gold a boost as October hike odds drop
Spot Gold (XAUUSD) is trading at $4,190.06, up $8.08 or +0.19% from yesterday's low of $4,165.69. The metal had a high of $4,202.39 on Wednesday.
New York Fed President John Williams has softened the tone for an October rate hike, saying policymakers have time to gather more information before making a decision. This decrease in probability pushed the odds down to 45%.
This shift in sentiment is causing tension between Williams and Governor Michael Barr, who believes further policy adjustments will be needed due to tariffs and the war with Iran's impact on inflation.
The PCE report today will provide the first hard number to weigh in on the October hike. A softer core PCE number could extend the pullback in yields and give buyers a shot at $4,230.51, while a firm reading would leave Wednesday's rally looking like short-covering and put Monday's low back in play.