Gold steady as dollar eases from 18-month high

October 08, 2026 (MLN): Gold prices were steady on Thursday as the US dollar retreated from an 18-month peak, allowing bullion to bounce back from a two-month low, while investors assessed the likelihood of another US Federal Reserve rate hike this year.

Currently, spot gold is down 0.88% to $4,131.74  an ounce as of [09:58 am] PST, according to data reported by Mettis Global.

The dollar's pullback made gold, which is priced in the greenback, cheaper for holders of other currencies and lifted demand.

Minutes of the Fed's previous meeting showed policymakers were split over the case for raising interest rates.

Some participants viewed a hike as necessary to contain the fallout from energy and other price shocks, while a more hawkish group saw it as important to guard against emerging demand-driven inflation, according to CNBC.

According to CME's FedWatch tool, traders see just an 18% chance of a hike later this month, but price in an 80% likelihood of an increase in December. Higher interest rates reduce the appeal of gold, which pays no yield.

Separately, IMF Managing Director Kristalina Georgieva warned that persistently high energy prices, record public debt and risks tied to the AI investment boom are threatening the global economy. She urged governments to adopt protective fiscal and monetary policy measures.

Among other precious metals, spot silver rose 0.4% to $60.36 per ounce, platinum gained 1.8% to $1,660.05 and palladium climbed 1.6% to $1,142.00.

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