Gold edges higher as traders ease rate hike bets on Warsh speech

[SINGAPORE] Gold opened the week higher as traders pared bets on the US Federal Reserve raising interest rates in October after remarks by chair Kevin Warsh. 

Bullion was trading around US$4,180 an ounce, after falling 0.7 per cent the week before.

Traders unwound bets on the probability of a quarter-point hike to less than one-in-five after comments by the Fed chair were interpreted as supporting the case to keep rates on hold when it meets next week.

Higher borrowing costs are a headwind for gold, which does not pay interest.

A hot US inflation print last week had spurred expectations for US hikes, boosting the US dollar, but Warsh’s comments halted its gains.

Gold has held above the key US$4,000-an-ounce support threshold since August, with its status as a safe haven asset providing a floor since a war-driven slump pushed it into bear territory earlier in 2026.

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It is still down around a fifth since the US-Iran conflict erupted in late February.

Spot gold rose 0.4 per cent to US$4,180.97 an ounce at 7.35 am in Singapore, while silver gained 0.6 per cent to US$57.33.

Platinum and palladium advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed after falling 0.3 per cent last week. BLOOMBERG