Gold Recovers Slightly from Two-Month Low

Gold prices recorded a slight rise today, Thursday, after touching their lowest level in two months during the previous session, as markets await further clarity on the path the Federal Reserve (the US central bank) will take regarding interest rates.

Gold rose 0.4 percent in spot trading to $4,127.40 per ounce by 01:01 GMT. Prices touched their lowest level since August 5 on Wednesday, after the strengthening of the dollar and higher US Treasury yields weighed on the market.

The Federal Reserve’s meeting minutes showed that policymakers were divided last month over the rationale for raising interest rates. Some viewed the rate hike as necessary to ward off the impact of energy price shocks and other disruptions, while a group leaning toward tighter policy believed it was essential to protect against emerging demand-driven inflation.

According to the CME Group’s “FedWatch” tool, traders assign only an 18 percent probability of a rate hike later this month, but continue to price in an 80 percent chance of a rate increase in December. Higher interest rates reduce the appeal of gold, which yields no return.

International Monetary Fund Managing Director Kristalina Georgieva warned that the global economy faces threats from persistently high energy prices, record-high public debt levels, and risks stemming from the artificial intelligence investment boom. She urged governments to implement preventive fiscal and monetary policy measures.

For other precious metals, silver rose 0.4 percent in spot trading to $60.39, platinum gained 1.4 percent to $1,653.88, and palladium climbed 1.4 percent to $1,141.00.