Gold Stabilizes Near Nine-Week Lows as Hawkish Fed Signals Drive Rate Hike Bets

Spot gold stabilized around $4,134 per ounce after falling to a multi-month low of $4,066, weighed down by rising expectations of further Federal Reserve rate increases. FOMC minutes showed unanimous backing for September's 25-basis-point hike to 3.75%-4%, while markets now price in up to an 80% probability of another rate rise by December to counter inflation risks. Higher borrowing costs, multi-decade high Treasury yields near 5.3%, and a stronger U.S. dollar dampened bullion demand, though losses were cushioned by the People's Bank of China extending its gold purchases to a 23rd consecutive month.