Gold rose Wednesday after touching its lowest level since Oct. 15, as lower Treasury yields supported bullion while traders assessed the Federal Reserve’s next rate move.
Reuters reported spot gold at $4,115.96 per troy ounce, down 0.2%, at 3:17 a.m. EDT (07:17 UTC). It later put the metal at $4,137.94, up 0.3%, at 2:12 p.m. EDT (18:12 UTC). Bloomberg reported a separate New York snapshot of $4,133.90 per ounce, up 0.2%, at 4:04 p.m. EDT (20:04 UTC).
Reuters tied the earlier rebound to a second consecutive decline in the U.S. 10-year Treasury yield. Since gold pays no interest, changes in yields can affect its relative appeal.
The Federal Reserve raised its benchmark rate range by 0.25 percentage point to 3.75%-4% on Sept. 16 and said inflation remained elevated. The meeting minutes recorded that most participants expected another increase would probably be appropriate before year-end. Reuters reported that CME FedWatch pricing implied a 15% chance of an October increase and a 90% chance of a December increase in an early Wednesday snapshot; a later Reuters report put December odds at 88%. Those figures are market estimates based on futures pricing, not Fed projections.
The U.S. Department of State directed personnel in non-emergency government roles in Saudi Arabia, along with their family members, to depart. State Department spokesperson Tommy Pigott said the order applied to Saudi Arabia alone. The Fed’s September minutes also said geopolitical developments and higher energy prices could add to inflation pressure, with energy costs weighing disproportionately on the real disposable income of low- and moderate-income households.
The Fed’s next meeting is scheduled for Oct. 27-28. The Bureau of Economic Analysis is set to release September personal income and outlays data, including personal consumption expenditures price data, on Oct. 29 at 8:30 a.m. EDT (12:30 UTC).
