Gold prices edged lower in global markets on Wednesday as investors awaited the minutes of the US Federal Reserve’s September meeting for fresh signals on the central bank’s future interest-rate policy.

According to Reuters, spot gold fell 0.3 percent to $4,150 per ounce at 1:45am GMT on Wednesday (October 7). US gold futures also declined 0.2 percent to $4,177 per ounce.

Market analyst Frank Wallbaum said gold prices remained relatively stable but could face some downward pressure. He said the Fed’s meeting minutes could provide clearer indications of policymakers’ views on interest rates and their level of support for future rate hikes.

According to Wallbaum, changes in the yields of long-term Treasury bonds, the US dollar or oil prices stemming from developments in the Middle East could further influence gold prices.

Recent comments from Fed officials have also signalled the central bank’s firm commitment to controlling inflation. San Francisco Fed President Mary Daly said the need for further rate hikes would largely depend on whether the factors driving inflation were fading or persisting. Kansas City Fed President Jeff Schmid, meanwhile, said higher interest rates were needed to bring inflation down.

Higher interest rates generally make income-generating assets more attractive to investors, potentially reducing the appeal of gold, which does not pay interest.

Meanwhile, delegates attending the London Bullion Market Association’s annual conference in Sorrento, Italy, forecast that gold could rise to $5,013 per ounce within the next 12 months.

Among other precious metals, spot silver fell nearly 1 percent to $61.12 per ounce. Platinum gained 0.2 percent to $1,704, while palladium declined 0.3 percent to $1,168.

Source: Reuters