Gold prices extend gains into third straight session

Gold prices maintained their uptrend at settlement today, Oct. 10, lifted by the increased appeal for safe-haven assets by dint of the burgeoning Middle East conflict, with investors perceiving a slight dovish shift in the tone of Federal Reserve policymakers.

The CME FedWatch Tool indicated that the chances of the US central bank lifting the benchmark rate by 25 basis points at the coming November meeting fell to 11.70%, compared to an 88.30% possibility for a decision to hold interest rates steady.

The International Monetary Fund (IMF) anticipates global economic growth to slow to 2.90% in 2024 from an expected 3% this year. The forecast for next year is down a notch from the 3% the fund had predicted back in July.

All eyes are on tomorrow’s release of the minutes of the Fed’s policy meeting in September, ahead of the issuance of the reading on the US Consumer Price Index on Oct. 12.

In terms of trading, bullion for December delivery gained 0.60%, or $11, to end today’s session at $1,875.30 per ounce — the highest settlement since Sept. 28.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, plunged by 0.25% to 105.84 points at 08:33 pm Makkah time.