Gold slips as markets assess Fed signals, await US inflation data

Gold weakened on Thursday as investors weighed the Federal Reserve’s latest signals and waited for US inflation figures due later in the day. Spot bullion was down 0.7% at $4,037.98 an ounce by 0410 GMT, while December US futures held near $4,049.80.

The Fed kept its benchmark rate within 3.75%-4.00% on Wednesday, as expected, and traders reduced the implied likelihood of a December rate increase to 78% from 84%, according to CME’s FedWatch Tool. Higher borrowing costs can make non-yielding gold less attractive, while the Personal Consumption Expenditures report, scheduled for 1230 GMT, is a closely monitored inflation measure for the Fed.

Business Recorder also reported declines in other precious metals: silver and platinum each lost 1.5%, while palladium fell 0.6%. The report cited uncertainty in the Middle East and investor positioning before US inflation data as factors behind gold’s move, while noting that China’s September gold imports through Hong Kong rose more than 28% from August.