Gold nudges up as Fed Chair Warsh tempers October rate-hike expectations

In early trade on Monday, gold prices in Singapore climbed to roughly US$4,180 per ounce, reversing a 0.7% drop the previous week. The move came after Federal Reserve Chair Kevin Warsh suggested the central bank may hold rates steady at its upcoming meeting, leading traders to slash the probability of a quarter-point hike to below 20%. Higher interest rates typically weigh on gold because the metal yields no interest, so the softened outlook lifted sentiment.

The Bloomberg Dollar Spot Index, which had fallen 0.3% the week before, remained largely unchanged, limiting dollar strength that had previously pressured gold. Silver rose 0.6% to US$57.33, and both platinum and palladium posted gains, reflecting broader metal market optimism. Gold continues to trade above the US$4,000 support level that has held since August, despite a roughly 20% decline since the US-Iran conflict began in February.