FX.co ★ Gold Holds Near Two-Month Low

Gold prices hovered around $4,120 an ounce on Thursday, staying close to the two-month low hit on Wednesday, as investors analyzed the Federal Reserve’s September meeting minutes for signals on the future path of interest rates. The dollar remained near an 18‑month high, and US Treasury yields stayed close to their highest levels in more than two decades after the minutes revealed that all 19 policymakers supported the September rate increase, with most viewing at least one more hike before year-end as appropriate.

According to the CME FedWatch Tool, markets are now pricing in nearly a 17% probability of a rate increase in October and more than an 85% chance of another hike in December. Higher interest rates generally undermine the appeal of non‑yielding assets such as gold.

At the same time, geopolitical tensions continued to underpin some safe‑haven demand. Shipping data showed that the number of vessels transiting the Strait of Hormuz has fallen to its lowest level in more than two months as fighting in the region has intensified.