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PRECIOUS-Gold rises on softer dollar, easing yields; Fed outlook in focus

PRECIOUS-Gold rises on softer dollar, easing yields; Fed outlook in focus

Fed's Musalem says tighter monetary policy needed to lower inflation Trump says US will not attack Iran before midterm elections Adds comments and updates prices By Ashitha Shivaprasad Oct 9 (Reuters) - Gold firmed on Friday as a softer US dollar and easing Treasury yields boosted bullion's appeal, while market players weighed lingering inflation concerns and the outlook for Federal Reserve interest rates. Spot gold XAU= rose 0.9% to $4,169.32 per ounce by 0137 GMT after hitting a two-month low on Wednesday. US gold futures GCcv1 gained 0.9% to $4,194.40. The dollar rally took a breather, making greenback-priced bullion more affordable for holders of other currencies, while the benchmark 10-year Treasury yield slipped for a second straight session. USD/ US/ "Possible tightening later on could keep gold at risk, especially as inflation fears remain high amid a rise in oil prices following increased Middle East supply disruption risks. However, ongoing central bank demand may limit losses," said Tony Sage, CEO of Critical Metals. "Looking ahead, traders will watch upcoming economic data that could provide further monetary policy clues and influence sentiment ahead of the Federal Reserve’s October meeting." Last month, the US central bank voted unanimously to raise the policy rate by a quarter of a percentage point. St. Louis Fed President Alberto Musalem said the US central bank will need to hike rates again to bring inflation back to its 2% target, although he declined to say what policymakers should do at their meeting later this month. Traders are pricing in an 18% chance of a rate hike in October and an 82% probability of an increase in December, according to CME's FedWatch tool. Gold is traditionally seen as a hedge against inflation, but higher interest rates diminish the appeal of the non-yielding asset. President Donald Trump said the US will not launch an attack on Iran before November's US midterm congressional elections, asserting that the two countries are having "productive" talks about ending the six-

Reuters•2026-10-09 01:55
PRECIOUS-Gold edges up after hitting 2-month low as markets weigh Fed rate path

PRECIOUS-Gold edges up after hitting 2-month low as markets weigh Fed rate path

Policymakers divided over rate hike logic in Sept - Fed minutes Number of vessels transiting Strait of Hormuz falls to lowest in over two months Silver falls over 2% Updates prices, adds US Fed Governor Christopher Waller remarks in paragraph 7 By Elizaveta Zhuravleva Oct 8 (Reuters) - Gold prices edged up on Thursday after hitting a two-month low in the previous session, as investors assessed the minutes of the US Federal Reserve's September meeting for clues on its interest rate trajectory. Spot gold XAU= rose 0.3% to $4,122.12 per ounce by 1128 GMT, having touched its lowest level since August 5 on Wednesday as a firmer dollar and higher US Treasury yields weighed. USD/ US/ US gold futures GCcv1 for December delivery were little changed at $4,146.60. Fed policymakers were divided last month over the rationale for raising rates, the minutes showed. While "some participants" saw a hike as needed to keep the impact of energy and other price shocks at bay, a more hawkish core viewed it as necessary to guard against emerging demand-driven inflation. Traders see only a 21.6% chance of an October rate hike, but are pricing in an 85% probability of an increase in December, according to the CME's FedWatch tool. FEDWATCH Higher rates dim the appeal of non-yielding gold. US Federal Reserve Governor Christopher Waller said on Thursday that additional rate hikes would likely be needed, but added there was "flexibility" about the pace of increases and left the door open for a pause in October. "Prices are wobbling above $4,100 as geopolitics stoke inflation fears and year-end Fed hike bets," said Lukman Otunuga, senior research analyst at FXTM, adding that a stronger dollar and Treasury yields could further pressure gold. "The technical picture adds to the downside risk. A sustained break below $4,100 opens a path toward $4,000, while a hold above it could trigger a rebound toward $4,200." On the geopolitical front, the number of vessels transiting the Strait of Hormuz fell to the lowest in more than two months after attack

Reuters•2026-10-08 12:04

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What will the price of XAG be in 2027?

Based on XAG's historical price performance prediction model, the price of XAG is projected to reach $88.61 in 2027.

What will the price of XAG be in 2032?

In 2032, the XAG price is expected to change by +39.00%. By the end of 2032, the XAG price is projected to reach $170.6, with a cumulative ROI of +180.34%.
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