Gold drops early Wednesday as the dollar strengthened and investors awaited the release of the minutes of the last Federal Reserve policy meeting for further direction.
Also impacting the yellow metal this morning are oil prices and Treasury yields. U.S. crude prices crept back toward $90 per barrel, while the benchmark 10-year Treasury note yield climbed more than 6 basis points to trade at 5.337% and the 30-year bond yield gained more than 7 basis points to 5.716%.
The Fed minutes that come out today at 2 pm Central will be closely parsed for sentiment about whether policymakers were leaning toward another immediate interest rate increase to curb soaring inflation, though recent economic reports and comment by Fed officials have indicated that the central bank is likely to leave rates unchanged in October.
Kansas City Fed President Jeff Schmid said this week that rates still need to go up to bring down inflation, though San Francisco Fed President Mary Daly said the decision depends on whether the factors spurring inflation remain unchanged. Prices of oil and other goods have increased dramatically since the start of the Iran war early this year.
December gold futures rose 0.7% Tuesday to settle at $4,187.10 an ounce on Comex, and the front-month contract gained 0.6% in the first two days of the week. Bullion dropped 6.6% last month after rising 9.1% in August and gaining 1.7% in July. It is down 3.6% so far this year after rallying 64% in 2025. The December contract is currently down $79.00 (-1.89%) an ounce to $4108.10 and the DG spot price is $4074.80.
The strength in the dollar put pressure on gold prices, making dollar-denominated bullion a more expensive asset for investors. Though prospects that the Fed will keep rates unchanged are considered bearish.
About 78% of the investors tracked by the CME FedWatch Tool are now betting that the Fed will keep interest rates unchanged in October, with the rest anticipating a 25 basis point rate increase.
The Fed last month raised interest rates for the first time in three years, increasing the benchmark rate to 3.75% to 4.00%, in large part because of inflation linked to high energy prices. The central bank indicated that another hike might be coming this year. Before last month’s rate hike, the Fed had kept interest rates unchanged this year after three previous rate cuts. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. The higher prices of goods are being seen as a pivotal issue in the election.
December silver futures added 0.5% Tuesday to settle at $61.59 an ounce on Comex, and the front-month increased 1.9% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver tumbled 9.6% in September after climbing 16% in August and sliding 3.6% in July. It is down 13% so far this year after rising 141% in 2025. The December contract is currently down $2.139 (-3.47%) an ounce to $59.450 and the DG spot pricde is $59.13.
Spot palladium slid 0.3% Tuesday to $1,176.50 an ounce but is up 1% so far this week. Palladium lost 11% last month after rallying 5.7% in August and adding 5.8% in July. It’s down 27% in 2026 after rising 74% last year. Currently, the DG spot price is down $52.90 an ounce to $1124.50.
Spot platinum decreased 0.8% Tuesday to $1,701.40 an ounce but rose 0.8% in the first two days of the week. Platinum fell 4.6% last month after increasing 7.5% in August and gaining 6.6% in July. Platinum is down 16% so far this year after increasing 122% in 2025. The DG spot price is currently down $90.30 an ounce to $1616.00.
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