Gold Prices Slide Ahead of Fed Minutes
Gold prices fell 2% to $4,080 an ounce on Wednesday, pressured by a stronger US dollar as investors awaited the Federal Reserve’s September meeting minutes for clues on future rate hikes. Markets largely expect the Fed to hold rates steady in October following softer jobs data, but still price in an over 80% chance of a December hike, according to CME FedWatch. Kansas City Fed President Jeff Schmid said interest rates may still need to rise to bring inflation under control, while San Francisco Fed President Mary Daly said the policy decision would depend on whether inflationary pressures prove temporary or persistent. Still, longer-term sentiment toward gold remains bullish. Delegates at the London Bullion Market Association’s annual conference in Italy forecast that gold could reach $5,013 an ounce over the next 12 months. Meanwhile, China’s central bank increased its gold purchases in September, extending its buying streak to 23 consecutive months, according to official data.
Gold prices fell 2% to $4,080 an ounce on Wednesday, pressured by a stronger US dollar as investors awaited the Federal Reserve’s September meeting minutes for clues on future rate hikes. Markets largely expect the Fed to hold rates steady in October following softer jobs data, but still price in an over 80% chance of a December hike, according to CME FedWatch. Kansas City Fed President Jeff Schmid said interest rates may still need to rise to bring inflation under control, while San Francisco Fed President Mary Daly said the policy decision would depend on whether inflationary pressures prove temporary or persistent.
Still, longer-term sentiment toward gold remains bullish. Delegates at the London Bullion Market Association’s annual conference in Italy forecast that gold could reach $5,013 an ounce over the next 12 months. Meanwhile, China’s central bank increased its gold purchases in September, extending its buying streak to 23 consecutive months, according to official data.