- Spot gold fell 0.4% to $4,327.74 per ounce by 1050 GMT and US gold futures slipped 0.4% to $4,364.90 after Fed's Musalem said more rate hikes are likely needed to cool prices.
- Traders price a 90% chance of a December rate hike per the FedWatch tool, keeping gold stuck in a near-term $4,300-$4,400 range.
- Chinese gold purchases through August topped 1,000 tons, surpassing the full-year 2025 total, with a strong yuan and generous import quotas keeping onshore prices at a premium to world benchmarks.
- December gold futures opened at $4,382.50 per troy ounce, flat versus Monday's close, holding despite the Fed's first rate increase in three years earlier this month.
- Gold is up 17.8% over one year but down 4.2% over one month, having recovered from Monday's slip on Middle East tensions that opened December futures at $4,413, down 0.3%.
Quotes
“More rate hikes likely needed to quell inflation, says Fed's Musalem”
“Overnight, the Fed's Musalem said more rate hikes are likely needed to cool prices, though he is known to lean hawkish. We remain stuck in a near-term range between $4,300 and $4,400 for”
“Purchases through August topped 1,000 tons, surpassing the total posted for the whole of 2025, according to the latest customs data, which goes back to 2017. Strong investment demand has kept onshore prices at a slight premium to world benchmarks, enticing imports, said Zijie Wu, an analyst at Jinrui Futures Co.”
“The yuan has remained strong since the beginning of this year, creating favorable conditions for gold imports and enabling regulators to grant more generous approval quotas”
“Buying high to hope for short-term higher is a tough strategy”
“Gold should not be seen as a driver of supercharged returns — it's there to act primarily as a stabilizer in a diversified portfolio”