PRECIOUS-Gold edges up after hitting 2-month low as markets weigh Fed rate path
Reuters2026/10/08 12:04Policymakers divided over rate hike logic in Sept - Fed minutes Number of vessels transiting Strait of Hormuz falls to lowest in over two months Silver falls over 2% Updates prices, adds US Fed Governor Christopher Waller remarks in paragraph 7 By Elizaveta Zhuravleva Oct 8 (Reuters) - Gold prices edged up on Thursday after hitting a two-month low in the previous session, as investors assessed the minutes of the US Federal Reserve's September meeting for clues on its interest rate trajectory. Spot gold XAU= rose 0.3% to $4,122.12 per ounce by 1128 GMT, having touched its lowest level since August 5 on Wednesday as a firmer dollar and higher US Treasury yields weighed. USD/ US/ US gold futures GCcv1 for December delivery were little changed at $4,146.60. Fed policymakers were divided last month over the rationale for raising rates, the minutes showed. While "some participants" saw a hike as needed to keep the impact of energy and other price shocks at bay, a more hawkish core viewed it as necessary to guard against emerging demand-driven inflation. Traders see only a 21.6% chance of an October rate hike, but are pricing in an 85% probability of an increase in December, according to the CME's FedWatch tool. FEDWATCH Higher rates dim the appeal of non-yielding gold. US Federal Reserve Governor Christopher Waller said on Thursday that additional rate hikes would likely be needed, but added there was "flexibility" about the pace of increases and left the door open for a pause in October. "Prices are wobbling above $4,100 as geopolitics stoke inflation fears and year-end Fed hike bets," said Lukman Otunuga, senior research analyst at FXTM, adding that a stronger dollar and Treasury yields could further pressure gold. "The technical picture adds to the downside risk. A sustained break below $4,100 opens a path toward $4,000, while a hold above it could trigger a rebound toward $4,200." On the geopolitical front, the number of vessels transiting the Strait of Hormuz fell to the lowest in more than two months after attack
Updates prices, adds US Fed Governor Christopher Waller remarks in paragraph 7
By Elizaveta Zhuravleva
Oct 8 (Reuters) - Gold prices edged up on Thursday after hitting a two-month low in the previous session, as investors assessed the minutes of the US Federal Reserve's September meeting for clues on its interest rate trajectory.
Spot gold XAU= rose 0.3% to $4,122.12 per ounce by 1128 GMT, having touched its lowest level since August 5 on Wednesday as a firmer dollar and higher US Treasury yields weighed. USD/ US/
US gold futures GCcv1 for December delivery were little changed at $4,146.60.
Fed policymakers were divided last month over the rationale for raising rates, the minutes showed. While "some participants" saw a hike as needed to keep the impact of energy and other price shocks at bay, a more hawkish core viewed it as necessary to guard against emerging demand-driven inflation.
Traders see only a 21.6% chance of an October rate hike, but are pricing in an 85% probability of an increase in December, according to the CME's FedWatch tool. FEDWATCH
Higher rates dim the appeal of non-yielding gold.
US Federal Reserve Governor Christopher Waller said on Thursday that additional rate hikes would likely be needed, but added there was "flexibility" about the pace of increases and left the door open for a pause in October.
"Prices are wobbling above $4,100 as geopolitics stoke inflation fears and year-end Fed hike bets," said Lukman Otunuga, senior research analyst at FXTM, adding that a stronger dollar and Treasury yields could further pressure gold.
"The technical picture adds to the downside risk. A sustained break below $4,100 opens a path toward $4,000, while a hold above it could trigger a rebound toward $4,200."
On the geopolitical front, the number of vessels transiting the Strait of Hormuz fell to the lowest in more than two months after attacks on tankers in the key waterway reached their highest last week since the start of the Middle East war, shipping data showed.
Among other metals, spot silver XAG= fell 2.2% to $58.8, platinum XPT= strengthened 1.0% to $1,647.30 and palladium XPD= climbed 0.7% to $1,133.00.
(Reporting by Elizaveta Zhuravleva in Gdansk; Editing by Sonia Cheema and Joyjeet Das)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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