Ammon News - Gold prices steadied on Thursday after sliding ‌to a two-month low in the previous session, as investors assessed the likelihood of another US Federal Reserve interest rate hike before year-end.

Spot gold was little changed at $4,116.67 per ounce by 0625 ​GMT. On Wednesday, bullion prices touched their lowest level since August 5 as a ​firmer dollar and higher US Treasury yields weighed on the market.

US gold ⁠futures were flat at $4,140.70.

"The short-term investment case for gold remains challenged... 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, Pepperstone.

"If markets begin treating rising long-end yields as a reflection of sovereign credit and fiscal risk rather than stronger economic fundamentals, gold could start to diverge positively from bond ​yields and the debasement trade could return with greater force."

Fed policymakers were divided last ​month over the rationale for raising interest rates, with "some participants" seeing a hike as needed to keep ‌the ⁠impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against emerging demand-driven inflation, minutes showed.

Traders see only a 19% chance of a rate hike later this month, but are pricing in an 86% ​likelihood of an increase ​in December, according to ⁠CME's FedWatch tool.
Higher rates diminish the appeal of non-yielding gold.

The global economy is under threat from persistently high energy prices, record ​public debt and risks from the AI investment boom, International Monetary Fund ​Managing Director ⁠Kristalina Georgieva warned, urging governments to implement protective fiscal and monetary policy measures.

Among other metals, spot silver fell 1.9% at $59.01, platinum added 1.6% to $1,657.18 and palladium climbed 1.1% to $1,136.80.

"We see ⁠silver ​on a downward trajectory given the deteriorating chart patterns ​and expect a test of the 2026 lows in the mid to high $50s," Marex analyst Edward Meir said ​in a note.


Reuters