Gold futures rebound as focus shifts to Fed minutes

Gold alloys

Gold prices rallied today, Oct. 9, as investors assessed statements by several Federal Reserve officials amid anticipation of the minutes of the US central bank's latest policy meeting for further cues on the path of interest rates.

Bullion for December delivery climbed by 0.13%, or $3.50, to $2,639.10 per ounce at 8:19 am Makkah time. Spot prices, meanwhile, fell slightly to $2,619.81 an ounce.

Federal Reserve Bank of Boston President Susan Collins said yesterday that with inflation trends growing weaker, chances that the US central bank can deliver more interest rate cuts are gaining traction.

On the other hand, the World Gold Council sees that hedge funds have further firmed their bullish bets on the yellow metal to the highest level since February 2020, as the Federal Reserve's monetary easing cycle will support gold and high-risk assets in the coming period.

Elsewhere, silver prices jumped 1% to $30.92 an ounce, with platinum and palladium prices also up 0.42% and 2%, respectively, to $1,027.5 and $966 per ounce.

Traders are awaiting the release of the Fed’s meeting minutes later in the day, followed by the US consumer price index report on Oct. 10, a day before the producer price data.