Fundamentals
Spot gold fell 0.6% to $4,115.50 per ounce by 0040 GMT, after hitting its lowest since October 15 at $4,104.33 on Wednesday. US gold futures for December delivery dropped 0.4% to $4,132.30.Two people were killed after Saudi air defences intercepted a drone that was attempting to hit a facility at Saudi Aramco's Shaybah oilfield on Wednesday, the energy ministry said.
The US State Department has ordered some diplomats and family members to depart from its missions in Saudi Arabia and plans to withdraw family members from a number of other US missions in the region, US officials told Reuters.
The Fed will skip raising interest rates this month and deliver a hike in December, according to nearly all economists polled by Reuters, as policymakers signal patience even as stubborn inflation argues for a tougher response.
Market focus is on the Fed's October 27-28 policy meeting and next week's Personal Consumption Expenditures (PCE) data, a key gauge closely watched by the central bank as it targets a 2% inflation rate.
Traders see just a 16% chance of a rate hike next week but are pricing in a 90% likelihood of an increase in December, according to CME's FedWatch Tool.
Higher interest rates typically weigh on gold prices because they increase the opportunity cost of holding bullion, which does not pay interest.
The euro zone economy has weathered this year's energy shock better than expected, with lower dependence on fossil fuels, stronger fiscal support and an AI investment boom helping sustain growth, European Central Bank economists said on Wednesday.
Among other metals, spot silver lost 1.1% to $57.33 per ounce, platinum slid 1.1% to $1,609.95 and palladium fell 0.8% to $1,078.52.
Data/Events (Gmt)
0645 France Business Climate Mfg, Overall, October1000 UK CBI Business Optimism Q4
1230 US Initial Jobless Clm, 17 October, w/e
1400 EU Consumer Confid. Flash, October
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)