Gold edges higher after hitting a two-month low

Wed Oct 08 2026

Gold prices rose 0.4% after falling to a two-month low earlier in the week. Investors are watching the US Federal Reserve’s interest-rate path, with markets pricing an 18% chance of a rate hike this month and an 80% probability of a December increase. Geopolitical tensions in Saudi Arabia and broader global economic risks are also influencing sentiment.

Fundamentals

Gold prices edged higher on Thursday after touching a two-month low in the previous session, while markets awaited further clarity on the US Federal Reserve's interest rate path.

Spot gold rose 0.4% to $4,127.40 per ounce by 0101 GMT. On Wednesday, prices touched their lowest level since August 5, as a firmer dollar and higher US Treasury yields weighed on the market.

US gold futures for December delivery gained 0.3% to $4,150.60.

Fed policymakers were divided last month over the rationale for raising interest rates. Minutes showed that “some participants” saw a hike as necessary to contain the impact of energy and other price shocks, while a more hawkish group considered a hike necessary to guard against emerging demand-driven inflation.

Traders see only an 18% chance of a rate hike later this month, while continuing to price in an 80% likelihood of a December increase, according to CME's FedWatch tool. Higher interest rates reduce the appeal of non-yielding gold.

The global economy is facing risks from persistently high energy prices, record public debt and risks linked to the AI investment boom, IMF Managing Director Kristalina Georgieva warned. She urged governments to implement protective fiscal and monetary policies.

On the geopolitical front, three people were killed in attacks on Saudi airports, according to the country's civil aviation authorities, as fighting intensified in Yemen between the Iran-aligned Houthis and Saudi-backed government forces.

Elsewhere, gold miner Perseus Mining sees strong merger and acquisition activity across the sector but expects dealmaking to remain difficult because companies are struggling to agree on valuations amid volatile bullion prices, its chief executive said.

 Other metals

- Spot silver: $60.39/oz, +0.4% - Platinum: $1,653.88/oz, +1.4% - Palladium: $1,141.00/oz, +1.4%

Source: http://in.reuters.com