Gold Holds Above $4,150 as Fears of Additional Fed Tightening Next Year Ease
Summary
- International gold prices have stabilized after a recent slide as expectations grew that the Fed is less likely to deliver additional rate hikes next year.
- Easing concerns over prolonged US monetary tightening have limited further losses in gold, which is holding around $4,157.37 an ounce.
- After comments from John Williams, president of the Federal Reserve Bank of New York, US Treasury yields edged lower, supporting gold prices and boosting the metal’s investment appeal.
Forecast Trend Report by Period
Gold prices steadied after a two-day decline as expectations grew that the Federal Reserve is less likely to raise interest rates again next year.
Bloomberg reported on October 13 that spot gold traded at $4,157.37 an ounce as of 8:05 a.m. Singapore time, down 0.1% from the previous session. Gold had fallen 0.8% over the previous two trading days, but further losses were limited as concerns about prolonged US monetary tightening eased.
Comments from John Williams, president of the Federal Reserve Bank of New York, helped shape market sentiment. Williams maintained that one additional rate increase this year would be appropriate, while projecting that further tightening would not be necessary in 2027.
US Treasury yields edged lower, lending support to gold prices. Because gold does not pay interest, it typically becomes more attractive to investors when rates fall.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.