Gold down 1% as dollar gains; Fed minutes in focus

Gold prices fell on Wednesday as a stronger US dollar weighed on the metal, according to Business Recorder. At 1127 GMT, spot gold had dropped 1.1% to $4,119.01 an ounce, while December US gold futures were 1% lower at $4,145.50. The dollar index gained 0.5%, which raised the cost of bullion for buyers holding other currencies. Silver, platinum and palladium also retreated, with silver down 2.6% at $60.10 an ounce, platinum 3.9% lower at $1,635.41 and palladium 2.9% weaker at $1,138.00.

Traders were watching for the Federal Reserve's September meeting notes, which could show how much officials back further rate increases. ActivTrades CEO Ricardo Evangelista said investors were likely reluctant to build larger gold positions until that picture became clearer. Markets largely expect no change in October after softer US jobs data, yet CME FedWatch still shows an 86% chance of a December hike.

On Wednesday, IMF Managing Director Kristalina Georgieva cautioned that the world economy is exposed to stubbornly expensive energy, record public debt and the AI investment surge. China's central bank raised its September gold acquisitions, marking a 23rd straight month of purchases, official figures indicated. Forecasts from delegates at the London Bullion Market Association's yearly meeting in Italy put the possible gold price at $5,013 an ounce over a 12-month horizon.