Gold Set to End Week Little Changed
Gold steadied near $4,150 an ounce on Friday and was on track to finish the week little changed, as investors assessed developments in the Middle East and the outlook for Federal Reserve monetary policy. Oil prices eased after President Donald Trump said the US was engaged in “productive discussions” with Iran and would refrain from attacking the country before the midterm elections. His comments came even as Iran intensified attacks on tankers passing through the Strait of Hormuz this week. A hurricane also disrupted US offshore oil production in the Gulf of Mexico. Meanwhile, markets are currently pricing in an approximately 82% probability that the Fed will keep interest rates unchanged this month, while the odds of a rate hike in December stand at around 81%. On Thursday, St. Louis Fed President Alberto Musalem indicated that rates may need to rise over the next six to nine months to bring inflation back toward the central bank’s 2% target.
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Gold steadied near $4,150 an ounce on Friday and was on track to finish the week little changed, as investors assessed developments in the Middle East and the outlook for Federal Reserve monetary policy. Oil prices eased after President Donald Trump said the US was engaged in “productive discussions” with Iran and would refrain from attacking the country before the midterm elections. His comments came even as Iran intensified attacks on tankers passing through the Strait of Hormuz this week. A hurricane also disrupted US offshore oil production in the Gulf of Mexico.
Meanwhile, markets are currently pricing in an approximately 82% probability that the Fed will keep interest rates unchanged this month, while the odds of a rate hike in December stand at around 81%. On Thursday, St. Louis Fed President Alberto Musalem indicated that rates may need to rise over the next six to nine months to bring inflation back toward the central bank’s 2% target.