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WAM reported that gold edged higher from a two-month low as the dollar eased and rate cut expectations lent some support to the precious metal. Spot gold rose modestly while US gold futures posted small gains, reflecting a pause in the recent selloff driven by stronger Treasury yields. The movement comes as traders monitor upcoming economic data that could influence the central bank’s path.
Reuters data placed spot gold little changed at $4,116.67 per ounce by early European trading on Thursday. Bullion had touched its lowest level since August 5 the day before amid a firmer dollar and rising US Treasury yields that weighed on non-yielding assets. US gold futures were flat at $4,140.70, the wire service added.
Higher interest rates diminish the appeal of gold, a dynamic that has contributed to its performance this year. CME’s FedWatch tool shows traders see only a 19 percent chance of a rate hike later this month but an 86 percent likelihood of an increase in December. The Federal Reserve’s September meeting minutes revealed all policymakers supported the prior hike with most expecting another by year-end, Reuters reported.
Central bank buying has offered underlying support despite the price pressure. The People’s Bank of China added about 23 tons to its holdings in September, the largest monthly purchase since 2023, according to a Livemint assessment. Central bankers gathered in Italy this week stressed gold’s role in diversifying reserves amid geopolitical uncertainties, that report noted.
The global economy faces threats from high energy prices, record public debt and AI-related risks, International Monetary Fund Managing Director Kristalina Georgieva warned. She urged governments to adopt protective fiscal and monetary measures in response. GoldPrice.com figures show the metal is down 5.9 percent so far in 2026 and sits 23.9 percent below its all-time closing high of $5,405 reached in January.
Chris Weston, head of research at Pepperstone, said in remarks reported by Reuters, “The short-term investment case for gold remains challenged. We would need to see a break above $4,275 to become more constructive on the near-term upside.” He noted that if markets view rising long-end yields as a reflection of sovereign credit and fiscal risk rather than stronger economic fundamentals, gold could diverge positively from bond yields.
Platinum and palladium each gained more than 1 percent on the day while silver faced separate pressure and declined, according to aggregated market updates from multiple sources including Reuters and GoldPrice.com. The gold-silver ratio climbed to 68.8, indicating shifting dynamics within precious metals. Weekly jobless claims data and energy market moves, including a jump in Brent crude, also factored into trading sentiment across commodities.
