Gold edges lower with focus on Fed minutes, rate path clues

Business Recorder reported that spot gold slipped 0.3% to $4,150.23 an ounce by 0145 GMT on Wednesday, while US gold futures were 0.2% weaker at $4,177.60. Traders were looking to the minutes of the Federal Reserve's September meeting, due later in the day, for clues on whether policymakers still favour more rate increases.

Frank Walbaum said the metal is likely to stay fairly steady with a slight downward tilt. He noted that the minutes could clarify how much support officials have for further increases, and that moves in Treasury yields, the dollar or oil linked to Middle East events would then intensify the effect on gold.

Recent remarks from Fed officials stressed the central bank's determination to bring inflation under control. San Francisco Fed President Mary Daly said further hikes depend on whether inflation drivers fade or persist, while Kansas City Fed President Jeff Schmid argued rates still need to rise. Although soft economic data has reduced expectations of an October increase, traders still put an 85% chance on a hike by December. Separately, delegates at the London Bullion Market Association's yearly meeting in Sorrento, Italy, forecast gold could reach $5,013 an ounce within 12 months.