Gold Prices Slip as Markets Reassess October Fed Rate Expectations - Yahoo Finance UK

AI desk brief

Gold edged lower as markets reassessed the odds of another October Fed hike, with elevated Treasury yields and a firmer dollar offsetting the drop in rate-hike expectations. Spot gold fell 0.1% to $4,152.98/oz and futures slipped 0.1% to $4,182.67/oz, while the Dollar Index rose 0.3% to 101.79.

Gold was still down 6% in September, its largest monthly fall since June, after the Fed’s first rate increase since 2023 and renewed tightening risk. Softer August PCE inflation data cut the implied probability of an October hike to about 34% from nearly 70% earlier in the week, but traders now look to Friday’s US jobs report as the next catalyst for rates, yields, and bullion direction.