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

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

Bullion rose as much as 0.5 per cent to near US$4,190 an ounce, reversing most of its losses in the previous week.

Traders unwound bets on the probability of a quarter-point rate 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 pays no 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 also been supported by a sell-off in tech stocks prompted by concerns over the artificial intelligence investment boom, as well as a rally in bonds that pushed yields lower.

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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 the metal into bear-market territory earlier in 2026.

Investors have recently piled into gold-backed exchange traded funds, adding to holdings for 13 consecutive weeks.

Still, bullion is down around a fifth since the US-Iran conflict erupted in late February.

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Headwinds for the precious metal remain in the near future, as traders continue to see a high likelihood for another rate increase before end-2026.

Spot gold rose 0.2 per cent to US$4,173.42 an ounce at 10.34 am in Singapore, while silver gained 0.8 per cent to US$57.42 an ounce.

Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.1 per cent lower after falling 0.3 per cent last week. BLOOMBERG