Gold steady ahead of Fed minutes release as traders await policy signals
Gold prices held steady on Wednesday as traders awaited the release of minutes from the US Federal Reserve's September meeting. Spot gold was trading at $4,159.62 per ounce by 0038 GMT, while US gold futures for December delivery were at $4,187.30. Investors are looking for fresh insights into the Fed's monetary policy path, particularly after recent mixed economic data.
San Francisco Fed President Mary Daly supported the September interest rate hike, citing rising inflation risks. However, she emphasized that future rate decisions will depend on whether inflationary shocks fade or persist. Kansas City Fed President Jeff Schmid argued that the Fed still needs to raise rates further to tame inflation, despite higher long-term yields slowing economic activity in some sectors.
Traders currently see an 85% chance of a rate hike in December, with softer economic data reducing expectations for an October increase. Higher interest rates typically make gold less attractive to investors seeking yield-generating assets.
Meanwhile, delegates at the London Bullion Market Association's annual gathering predicted gold could reach $5,013 per ounce over the next 12 months. Other precious metals saw mixed movements, with spot silver down 0.6% at $61.32, platinum up 0.4% at $1,707.65, and palladium off 0.1% at $1,170.75.