World gold prices stabilized after a slight increase the previous day. Investors are assessing the situation in the Middle East and the prospects of the U.S. Federal Reserve raising interest rates. As of the morning of October 9, gold was priced at $4,144.05 per ounce. Bloomberg reports, UNN writes.
Details
As of 8:00 a.m. Singapore time, gold had risen by 0.3%, recovering after reaching a two-month low at the beginning of the week.
Meanwhile, silver rose 0.6% to $59.54 per ounce. Platinum and palladium also posted slight gains.
What is affecting precious metal prices
U.S. President Donald Trump said that Washington does not plan to attack Iran before the midterm elections in November, citing "productive talks" with Tehran.
Gold rises amid a stronger dollar - what is the price per ounce05.10.26, 15:05
At the same time, Iran has intensified attacks on oil tankers in the Strait of Hormuz, maintaining the risks of further increases in energy prices and inflation.
Expectations regarding Fed policy remain an additional market factor. St. Louis Federal Reserve Bank President Alberto Musalem said that over the next 6–9 months, interest rates may need to be raised to bring inflation back to the 2% target.
Traders currently expect the Fed to leave rates unchanged at the end of October. However, the prospect of further rate increases is restraining the rise in gold, which does not generate interest income.