Gold price reverses gains as investors weigh Fed rate path - Mining.com.au

AI desk brief

Gold reversed earlier gains as traders reassessed the Fed path ahead of next week’s FOMC meeting, with spot gold down 0.5% to about US$4,144/oz after touching a 0.6% intraday gain. US gold futures fell 0.3% as markets priced only a 15% chance of another quarter-point hike next week, but the tone of Fed guidance and next week’s PCE inflation data remain the key catalysts.

The metal is getting mixed support from weaker Treasury yields and ongoing equity volatility, which is boosting safe-haven demand and lowering the opportunity cost of holding bullion. Goldman Sachs estimated central bank purchases at 79 tonnes in August, well above the pre-2022 monthly average of 17 tonnes, while gold-backed ETFs have seen buying for 13 straight weeks.