Gold prices remained stable on October 9, 2024, with spot gold holding at $2,619.75 per ounce as investors anticipated insights from the Federal Reserve's latest policy meeting minutes regarding interest rate trends. This follows a recent two-week low and a record high of $2,685.42 reached on September 26.
U.S. gold futures saw a slight increase of 0.1%, reaching $2,638.20. The dollar index recently surged to a seven-week high, making gold less appealing to holders of other currencies.
Analysts suggest that while gold prices are experiencing a necessary decline, demand remains strong, with potential buyers waiting for lower prices. The upcoming Consumer Price Index (CPI) report on Thursday and Producer Price Index (PPI) data on Friday are also being closely monitored, as soft CPI results could boost gold prices.
Market expectations have shifted, with a reduced likelihood of a significant interest rate cut next month following a robust jobs report. Boston Fed President Susan Collins indicated that easing inflation trends could allow for further rate cuts, which typically benefit non-yielding assets like gold.
In September, gold exchange-traded funds noted a fifth consecutive month of inflows, particularly from North America, according to the World Gold Council. Meanwhile, silver prices dipped by 0.3%, while platinum rose by 0.4% and palladium fell by 0.3%.
Reporting by Ashitha Shivaprasad and Daksh Grover; Editing by Sherry Jacob-Phillips