Gold prices edged higher on Thursday after touching a two-month low in the previous session, as markets awaited greater clarity on the Federal Reserve’s approach to interest rates.
Spot gold rose 0.4% to $4,127.40 an ounce by 01:01 GMT. Prices touched their lowest level since August 5 on Wednesday, pressured by a stronger U.S. dollar and higher U.S. Treasury yields.
U.S. gold futures for December delivery rose 0.3% to $4,150.60 an ounce.
Minutes from the Federal Reserve’s latest meeting showed policymakers were divided last month over the reasons for raising interest rates. Some argued that higher rates were necessary to shield the economy from energy-price shocks and other disruptions, while a more hawkish group viewed a rate increase as necessary to guard against emerging demand-driven inflation.
According to CME’s FedWatch tool, traders see only an 18% chance of a rate hike later this month, while they continue to price in an 80% probability of a hike in December. Higher interest rates tend to reduce the appeal of gold, which does not generate interest income.
International Monetary Fund Managing Director Kristalina Georgieva warned that the global economy faces risks from persistently high energy prices, record levels of public debt and the risks associated with a surge in artificial intelligence investment. She urged governments to implement precautionary fiscal and monetary policy measures.
On the geopolitical front, Saudi Arabia’s General Authority of Civil Aviation said Wednesday that three people were killed in attacks targeting two airports in the kingdom, amid escalating fighting in Yemen between the Iran-aligned Houthi group and Saudi-backed government forces.
Among other precious metals, spot silver rose 0.4% to $60.39 an ounce, platinum gained 1.4% to $1,653.88, and palladium advanced 1.4% to $1,141.00.
Source: Reuters
