Gold prices remained unchanged on Wednesday as attention turned to the minutes from the US Federal Reserve’s meeting for new insights into the trajectory of monetary policy. Spot gold remained relatively stable at $4,159.62 per ounce as of 0038. US gold futures for December delivery stabilised at $4,187.30. Minutes from the September Federal Open Market Committee meeting are expected to be released later today. San Francisco Fed President Mary Daly on Tuesday expressed her support for September’s interest-rate hike in light of increasing inflation risks. However, she indicated that the necessity for further hikes largely hinges on whether the factors driving inflation are expected to diminish or, on the contrary, persist and intensify.
Kansas City Fed President Jeff Schmid stated that the Fed must continue to increase its policy rate to combat inflation, despite the fact that elevated long-term yields are impacting certain sectors of the economy. Recent soft economic data has diminished expectations for a rate hike in October; however, traders continue to assign an 85% probability to an increase in December. In a high interest rate environment, investors typically exhibit a preference for yield-generating assets rather than gold. The price of gold is anticipated to reach $5,013 per troy ounce within the next 12 months, according to forecasts made by delegates at the London Bullion Market Association’s annual gathering in Sorrento, Italy, on Tuesday.
US Vise President JD Vance stated in an interview that Iran must implement a “meaningful” reduction in its nuclear enrichment capacity to meet US demands and conclude the ongoing seven-month conflict, despite Washington’s uncertainty regarding Tehran’s decision-making process in negotiations. Among other metals, spot silver decreased by 0.6% to $61.32, while platinum experienced an increase of 0.4% to $1,707.65, and palladium saw a slight decline of 0.1% to $1,170.75.
