Gold Pressured Near 2-Month Low
Gold traded near $4,100 an ounce on Thursday, pinned near its lowest level since early August as the latest FOMC minutes pointed to the possibility of another US rate hike this year, while elevated oil prices continued to fuel inflation concerns. Minutes from the Federal Reserve’s September meeting showed that all 19 policymakers supported the September rate increase, with most indicating that another hike would likely be appropriate before year-end. Markets broadly expect the Fed to leave rates unchanged this month, while the probability of a December hike currently stands at around 78%. Meanwhile, oil prices advanced following reports that the Trump administration had asked the Pentagon to prepare strike options against Iran that could be carried out before the midterm elections. Risks to shipping through the Strait of Hormuz also remain elevated, even as oil flows from the Middle East are estimated to have recovered to prewar levels.
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Gold traded near $4,100 an ounce on Thursday, pinned near its lowest level since early August as the latest FOMC minutes pointed to the possibility of another US rate hike this year, while elevated oil prices continued to fuel inflation concerns. Minutes from the Federal Reserve’s September meeting showed that all 19 policymakers supported the September rate increase, with most indicating that another hike would likely be appropriate before year-end. Markets broadly expect the Fed to leave rates unchanged this month, while the probability of a December hike currently stands at around 78%.
Meanwhile, oil prices advanced following reports that the Trump administration had asked the Pentagon to prepare strike options against Iran that could be carried out before the midterm elections. Risks to shipping through the Strait of Hormuz also remain elevated, even as oil flows from the Middle East are estimated to have recovered to prewar levels.