FX.co ★ Gold Pressured Near 2-Month Low

Gold traded near $4,100 an ounce on Thursday, hovering close to its lowest level since early August as the latest FOMC minutes signaled the possibility of another US rate hike this year and persistently high oil prices kept inflation concerns elevated. Minutes from the Federal Reserve’s September meeting showed that all 19 policymakers backed the latest rate increase, with most indicating that an additional hike would likely be appropriate before year-end. Markets widely expect the Fed to hold rates steady this month, while the probability of a December hike is currently estimated at about 78%. At the same time, oil prices climbed following reports that the Trump administration had asked the Pentagon to prepare strike options against Iran that could be executed before the midterm elections. Risks to shipping through the Strait of Hormuz also remain high, even though oil flows from the Middle East are now estimated to have returned to prewar levels.