Gold steady as dollar eases from 18-month high

Gold prices held steady on Thursday as the US dollar pulled back from an 18-month peak, according to Mettis Global. Spot gold was down 0.88 per cent at $4,131.74 an ounce as of 09:58 am PST, having bounced off a two-month low. A weaker dollar made the metal cheaper for holders of other currencies, which lifted demand.

Minutes of the previous Federal Reserve meeting showed policymakers were divided on raising interest rates, according to CNBC. CME's FedWatch tool showed traders assign only an 18% chance to a rate hike later this month and an 80% probability of a rise by December. Because bullion pays no yield, rising rates make holding it less appealing.

Separately, IMF Managing Director Kristalina Georgieva cautioned that the global economy faces pressure from costly energy, heavy public debt and the AI investment surge. She also called on governments to take protective fiscal and monetary steps. Silver rose 0.4 per cent to $60.36 an ounce, platinum gained 1.8 per cent to $1,660.05 and palladium climbed 1.6 per cent to $1,142.00.