Gold edges lower with focus on Fed minutes, rate path clues

Gold prices slipped on Wednesday as investors looked to minutes from the US Federal Reserve’s September meeting for indications on whether policymakers remain inclined to raise rates further.

Spot gold eased 0.3% to $4,150.23 per ounce by 0145 GMT.

US gold futures edged 0.2% lower to $4,177.60.

Minutes of the latest Federal Open Market Committee meeting are due later in the day.

“The yellow metal is likely to remain relatively stable with a mild downside bias,” said Frank Walbaum.

“Minutes will clarify the Fed’s monetary policy and the degree of support among policymakers for further rate increases and could reshape upcoming hike odds.

Subsequent moves in long-term Treasury yields, the dollar, or oil prices triggered by any Middle East developments would then amplify the directional impact (on gold),“ Walbaum said.

Recent comments from Fed officials underscored the US central bank’s commitment to bringing inflation under control.

San Francisco Fed President Mary Dalysaid whether further rate hikes are needed depends largely on whether the factors pushing up inflation fade or persist, while Kansas City Fed President Jeff Schmid said rates still need to rise further to bring inflation down.

While recent 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 attending the London Bullion Market Association’sannual conference in Sorrento, Italy, forecast that gold could reach $5,013 an ounce over the next 12 months.

Elsewhere, US Vice President JD Vance said in an exclusive interview with Reuters that Iran must make a “meaningful” reduction in its nuclear enrichment capacity to satisfy US 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.