Gold climbed above $4,170 an ounce on Monday, extending its recent rally after dovish comments from Federal Reserve Chair Kevin Warsh led traders to pare back expectations of an October rate hike. Speaking at the IMF’s annual meetings in Bangkok on Friday, Warsh declined to signal the likely outcome of this month’s FOMC meeting but stressed that hotter-than-expected inflation had not altered his assessment of the US economy. The Fed has since entered its blackout period ahead of the October 27–28 policy meeting, with futures markets implying roughly an 84% chance that rates will be left unchanged.
Gold also drew support from safe-haven flows as mounting anxiety over AI-related investments sparked an equity selloff and drove bond yields lower. At the same time, intensifying geopolitical tensions in the Middle East and Eastern Europe kept oil prices elevated, while violent protests in France and other parts of Europe further deepened overall market uncertainty.
