Spot gold rose 0.7 percent to $4,141.09 an ounce by 0140 GMT on Thursday after touching its lowest level since 5 August on Wednesday. Traders were still pricing an 80 percent chance of a Federal Reserve rate increase in December.
Spot gold rose on Thursday as the dollar eased from an 18-month high, Reuters reported. By 0140 GMT the metal was up 0.7 percent at $4,141.09 an ounce, after touching its lowest level since 5 August on Wednesday as a firmer dollar and higher US Treasury yields weighed on the price.
US gold futures for December delivery gained 0.6 percent to $4,165.10. Reuters said traders were weighing the chance of another Federal Reserve rate increase this year. CME's FedWatch tool, as cited by Reuters, showed an 18 percent chance of a hike later this month and an 80 percent chance of an increase in December. Higher rates reduce the appeal of gold, which pays no yield.
The same dispatch said Federal Reserve minutes showed policymakers divided over the case for a rate increase in September. International Monetary Fund managing director Kristalina Georgieva warned that high energy prices, record public debt and risks from the artificial-intelligence investment boom threaten growth, and urged governments to use fiscal and monetary measures.
Among other metals, spot silver was steady at $60.18, platinum added 2.1 percent to $1,665.00 and palladium climbed 1.6 percent to $1,142.86, Reuters said. The figures are a morning snapshot, not a closing price.
No central-bank gold transaction was reported in the dispatch. The next policy signal traders were watching was the December Fed meeting implied by the FedWatch probabilities.
People Sentiments Mixed
- Kristalina Georgieva warned that energy prices, public debt and AI investment risks threaten growth.