Gold Holds Steady Ahead of Fed Minutes
Spot gold traded nearly unchanged at $4,159.62 per ounce as of 0038 GMT on Wednesday, while US gold futures for December delivery were steady at $4,187.30. Market participants are awaiting the release of minutes from the Federal Reserve's September meeting, scheduled for later in the day, for further insight into the central bank's monetary policy trajectory.[S1][S2]
Investors are awaiting the release of the September Federal Open Market Committee minutes for insight into how officials view the policy outlook. Softer recent economic readings have dampened the case for an October rate increase, yet market participants still price an 85 percent likelihood of a move in December. When rates are elevated, assets that produce income often draw money away from bullion.[S1]
Fed Officials Signal Divergent Views on Further Tightening
Mary Daly, president of the San Francisco Fed, said on Tuesday she backed the September rate increase amid mounting inflation risks, though she believes the need for further moves hinges mainly on whether the forces lifting prices appear likely to subside or instead keep building. Kansas City Fed president Jeff Schmid said additional policy tightening is still required to bring inflation down, even though elevated long-term yields are restraining activity in certain segments of the economy.[S1]
Other Metals and Market Forecasts
Among other precious metals, spot silver fell 0.6 percent to $61.32, platinum rose 0.4 percent to $1,707.65, and palladium lost 0.1 percent to $1,170.75. Delegates to the London Bullion Market Association's annual gathering in Sorrento, Italy, predicted on Tuesday that the price of gold would reach $5,013 a troy ounce over the next 12 months.[S1]
Speaking exclusively to Reuters, US Vice-President JD Vance stated that Iran would need to substantially scale back its uranium enrichment capability to meet American conditions and bring the country's seven-month conflict to a close, adding that Washington remained uncertain about how Tehran reaches decisions during the talks.[S1]
