Spot gold eased 0.3% to $4,150.23 per ounce by 0145 GMT, while U.S. gold futures edged 0.2% lower to $4,177.60. The dip comes as investors await the Federal Open Market Committee’s minutes, due later in the day, for signals on whether policymakers will continue to raise rates.
Frank Walbaum, a market analyst at Naga.com, said the yellow metal is likely to remain relatively stable with a mild downside bias. He added that the minutes could clarify the Fed’s monetary policy stance and the degree of support among policymakers for further rate increases, potentially reshaping hike odds.
Recent comments from Fed officials reinforce the central bank’s focus on curbing inflation. San Francisco Fed President Mary Daly noted that further rate hikes depend on whether inflationary pressures fade or persist, while Kansas City Fed President Jeff Schmid said rates still need to rise to bring inflation down.
Although soft economic data has dampened expectations of an October rate increase, traders still price in an 85% chance of a hike by December. In a high‑interest‑rate environment, investors tend to favour yield‑generating assets over gold.
Separately, delegates at the London Bullion Market Association’s annual conference in Sorrento, Italy, forecast that gold could reach $5,013 an ounce over the next 12 months.
Elsewhere, U.S. Vice President J.D. Vance said in an exclusive interview that Iran must make a “meaningful” reduction in its nuclear enrichment capacity to satisfy U.S. demands and end the seven‑month war. Spot silver fell roughly 1% to $61.12, platinum rose 0.2% to $1,704.25, while palladium lost 0.3% to $1,168.20.
