Gold Holds Near Two-Month Low

Gold prices hovered around $4,120 an ounce on Thursday, remaining close to a two-month low reached on Wednesday, as investors assessed the Federal Reserve’s September meeting minutes for clues on the interest-rate outlook. The dollar held near an 18-month high, while US Treasury yields remained close to their highest level in more than two decades after the minutes showed all 19 policymakers backed September’s rate hike, with most seeing another increase as appropriate before year-end. Markets now see a near 17% chance of a hike in October and an over 85% probability of a December increase, according to the CME FedWatch Tool. Higher interest rates reduce the appeal of non-yielding gold. Meanwhile, geopolitical tensions continued to support some demand for safe-haven assets. The number of vessels transiting the Strait of Hormuz fell to its lowest level in more than two months as fighting in the region escalated, according to shipping data.