Gold drops as dollar gains ahead of Fed minutes
Gold prices declined today as the U.S. dollar strengthened, with the metal falling by 0.8% to reach $4,130.37 per ounce. Investors are now awaiting the Federal Reserve's September meeting minutes for clues about the prospects of further interest rate hikes. Statements from Federal Reserve officials emphasized the need to control inflation, with expectations that the U.S. central bank will maintain its rate hike policy if inflationary pressures continue to rise. Although weaker economic data shortened the likelihood of a rate increase in October, forecasts still suggest a possibility of a hike in December, which favors investors’ preference for interest-bearing assets over gold. Additionally, a group of participants projected that gold could reach $5,013 per ounce next year. Meanwhile, China increased its gold purchases in September, continuing a consistent trend for the twenty-third consecutive month.
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