Gold prices recover from two-month low as dollar rally stalls

Business Recorder reported that spot gold rose 0.5 per cent to $4,132.66 an ounce by 0140 GMT on Thursday, recouping some of the ground lost a day earlier. The bounce came as the dollar retreated from an 18-month high, making bullion cheaper for buyers holding other currencies. On Wednesday, prices touched their lowest point since August 5 under pressure from a stronger greenback and higher US Treasury yields.

On the US market, December gold futures climbed 0.4 per cent to $4,157.60. Pepperstone's head of research, Chris Weston, said the short-term outlook remains difficult, and prices would need to clear $4,275 before he would turn more positive on the near-term upside. Traders put the odds of a rate hike later this month at 18 per cent but 80 per cent for December, according to CME's FedWatch tool. Minutes showed Fed policymakers were split last month over whether to raise rates to counter pressure from energy costs and other prices.

Separately, IMF Managing Director Kristalina Georgieva cautioned that the global economy faces threats from high energy prices, heavy public debt and risks linked to the AI investment boom. She urged governments to adopt protective fiscal and monetary measures.