Fed Minutes Loom, Gold Holds Steady

9 Oct 2024 , 10:31 AM

On Wednesday, gold prices remained stable as traders awaited the Federal Reserve’s latest meeting minutes for insight on interest rate policy in the US.

Fed Bank of Boston President Susan Collins stated that as inflation trends weaken, it is quite likely that the US central bank would decrease interest rates further.

Meanwhile, Atlanta Fed President Raphael Bostic stated that “the labour market… is certainly slowed down, but is not slow.”

Spot gold remained unchanged at $2,622.24 per ounce, after losing more than 1% the previous day. U.S. gold futures ticked up 0.2% to $2,641.00.

Minutes of the Fed’s September policy meeting are due at 1800 GMT. Traders will also look at the US Consumer Price Index (CPI) report on Thursday and the Producer Price Index (PPI) data on Friday.

CME FedWatch indicates that traders now expect a roughly 87% chance of a 25-basis-point rate cut in November.

The World Gold Council said that gold exchange-traded funds saw their fifth consecutive month of inflows in September, as North American-listed funds increased their holdings.

In the Middle East, Israel Prime Minister Benjamin Netanyahu announced that Israeli airstrikes had killed two successors to Hezbollah’s assassinated commander, as Israel intensified its ground offensive against the Iran-backed group by sending a fourth army division into south Lebanon.

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