Gold Continues Gains as Rate Hike Concerns Ease

Gold rose for a third consecutive session on Tuesday as fears of a US interest rate hike next month receded, while investors awaited the minutes of the latest meeting of the Federal Reserve (the US central bank) in search of new indicators for the path of monetary policy.

Spot gold rose 0.4 percent to $4,431.09 per ounce by 00:37 GMT, while US December gold futures climbed 0.3 percent to $4,487.70.

Most economists in a Reuters poll expected the US central bank to keep its key interest rate unchanged next month and through the end of the year.

Markets now price in a roughly 65 percent chance that the Federal Reserve will hold rates steady, down from earlier bets on a quarter-point hike at its September meeting, after data showed unexpected job losses last month, consumer price inflation below expectations, and weak retail sales.

A senior Iranian official told Reuters on Monday that his country had decided to shift its policy from defense to “full-scale attack” due to the failure of efforts to reach a permanent agreement ending the war with the United States, as Washington ruled out extending the temporary ceasefire.

In other precious metals, spot silver rose 0.8 percent to $66.33 per ounce, platinum gained 0.5 percent to $1,779.50, while palladium was almost unchanged at $1,332.50.