Spot gold edged higher on Thursday, trading at $4,132.66 per ounce by 0140 GMT, as the U.S. dollar eased from an 18‑month peak. The pullback lifted demand for greenback‑priced gold, making it cheaper for buyers using other currencies and helping bullion recover from a two‑month low reached on Wednesday.
U.S. gold futures for December delivery gained 0.4%, closing at $4,157.60. The market remains cautious, with the short‑term investment case for gold still challenged. “For now, it remains a seller’s market, and we would need to see a break above $4,275 to become more constructive on the near‑term upside,” said Chris Weston, head of research at Pepperstone.
Weston added that if markets start viewing rising long‑end yields as a reflection of sovereign credit and fiscal risk rather than stronger economic fundamentals, gold could diverge positively from bond yields and the debasement trade could return with greater force. Traders see only an 18% chance of a Fed rate hike later this month, but an 80% likelihood of an increase in December, according to CME’s FedWatch tool.
Higher rates reduce the appeal of non‑yielding gold, while the global economy faces threats from high energy prices, record public debt and risks from the AI investment boom, warned IMF Managing Director Kristalina Georgieva. Among other metals, spot silver rose to $60.36, platinum to $1,660.05 and palladium to $1,142.00.
Market participants will watch the dollar’s trajectory and Fed policy decisions closely as they assess gold’s short‑term outlook.
