PRECIOUS-Gold rises on softer dollar, easing yields; Fed outlook in focus
Reuters2026/10/09 01:55Fed's Musalem says tighter monetary policy needed to lower inflation Trump says US will not attack Iran before midterm elections Adds comments and updates prices By Ashitha Shivaprasad Oct 9 (Reuters) - Gold firmed on Friday as a softer US dollar and easing Treasury yields boosted bullion's appeal, while market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates. Spot gold XAU= rose 0.9% to $4,169.32 per ounce by 0137 GMT after hitting a two-month low on Wednesday. US gold futures GCcv1 gained 0.9% to $4,194.40. The dollar rally took a breather, making greenback-priced bullion more affordable for holders of other currencies, while the benchmark 10-year Treasury yield slipped for a second straight session. USD/ US/ "Possible tightening later on could keep gold at risk, especially as inflation fears remain high amid a rise in oil prices following increased Middle East supply disruption risks. However, ongoing central bank demand may limit losses," said Tony Sage, CEO of Critical Metals. "Looking ahead, traders will watch upcoming economic data that could provide further monetary policy clues and influence sentiment ahead of the Federal Reserve’s October meeting." Last month, the US central bank voted unanimously to raise the policy rate by a quarter of a percentage point. St. Louis Fed President Alberto Musalem said the US central bank will need to hike rates again to bring inflation back to its 2% target, although he declined to say what policymakers should do at their meeting later this month. Traders are pricing in an 18% chance of a rate hike in October and an 82% probability of an increase in December, according to CME's FedWatch tool. Gold is traditionally seen as a hedge against inflation, but higher interest rates diminish the appeal of the non-yielding asset. President Donald Trump said the US will not launch an attack on Iran before November's US midterm congressional elections, asserting that the two countries are having "productive" talks about ending the six-
Adds comments and updates prices
By Ashitha Shivaprasad
Oct 9 (Reuters) - Gold firmed on Friday as a softer US dollar and easing Treasury yields boosted bullion's appeal, while market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates.
Spot gold XAU= rose 0.9% to $4,169.32 per ounce by 0137 GMT after hitting a two-month low on Wednesday. US gold futures GCcv1 gained 0.9% to $4,194.40.
The dollar rally took a breather, making greenback-priced bullion more affordable for holders of other currencies, while the benchmark 10-year Treasury yield slipped for a second straight session. USD/ US/
"Possible tightening later on could keep gold at risk, especially as inflation fears remain high amid a rise in oil prices following increased Middle East supply disruption risks. However, ongoing central bank demand may limit losses," said Tony Sage, CEO of Critical Metals.
"Looking ahead, traders will watch upcoming economic data that could provide further monetary policy clues and influence sentiment ahead of the Federal Reserve’s October meeting."
Last month, the US central bank voted unanimously to raise the policy rate by a quarter of a percentage point.
St. Louis Fed President Alberto Musalem said the US central bank will need to hike rates again to bring inflation back to its 2% target, although he declined to say what policymakers should do at their meeting later this month.
Traders are pricing in an 18% chance of a rate hike in October and an 82% probability of an increase in December, according to CME's FedWatch tool.
Gold is traditionally seen as a hedge against inflation, but higher interest rates diminish the appeal of the non-yielding asset.
President Donald Trump said the US will not launch an attack on Iran before November's US midterm congressional elections, asserting that the two countries are having "productive" talks about ending the six-month-old war.
Spot silver XAG= rose 1.1% to $60.00, platinum XPT= gained 2.2% to $1,670.15 and palladium XPD= climbed 2.1% to $1,146.98. But all three metals were on track for weekly losses.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)
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.
You may also like
The European Central Bank's overnight lending facility received no funds, deposits totaled 1,960.08 billion euros.
The European Central Bank stated that no funds were borrowed through the overnight lending facility, and the current deposit volume stands at 1,960.08 billion euros.
Asia LNG Shipping Company Signs 10-Year Charter Contract for an LNG Carrier
MISC: The Asian LNG transport company has signed a 10-year charter contract with Malaysian LNG company, involving an 18,700-cubic-meter LNG carrier. The contract will take effect starting from 2028.
The yield on UK 10-year government bonds remains steady above 5.4%, near a 19-year high.
⑴ The yield on the UK 10-year government bonds remained steady above 5.4%, near a 19-year high, as investors weighed declining oil prices against hawkish comments from Bank of England policymakers. ⑵ Brent crude retreated as concerns over Middle East supply eased after US President Trump ruled out the possibility of attacking Iran before the November midterm elections and described efforts to end the conflict as productive. ⑶ Meanwhile, Bank of England Chief Economist Huw Pill stated that the central bank must continue focusing on controlling inflation. Monetary Policy Committee member Megan Greene warned that UK wage growth could reach around 3.5% by 2027, potentially continuing to drive inflationary pressures and increasing the need for further rate hikes. ⑷ Governor Andrew Bailey also emphasized that the central bank must continue focusing on reducing inflation. ⑸ The market anticipates the Bank of England will raise rates in November, as it remains the only major central bank yet to begin tightening monetary policy to counter inflationary pressures arising from the US-Iran conflict.
JPMorgan raises Chevron's target price to $241
JPMorgan has raised the target price of Chevron (CVX.US) from $222 to $241.
Crypto prices
More
