GDANSK (Oct 8): Gold prices edged up on Thursday after hitting a two-month low in the previous session, as investors assessed the minutes of the US Federal Reserve's (Fed) September meeting for clues on its interest rate trajectory.

Spot gold rose 0.3% to US$4,122.99 (RM16,869.21) per ounce by 0916 GMT, having touched its lowest level since Aug 5 on Wednesday as a firmer dollar and higher US Treasury yields weighed.

US gold futures for December delivery added 0.18% to US$4,147.90.

Fed policymakers were divided last month over the rationale for raising rates, with "some participants" seeing a hike as needed to keep the impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against emerging demand-driven inflation, the minutes showed.

Traders see only a 21.6% chance of an October rate hike, but are pricing in an 85% probability of an increase in December, according to the CME's FedWatch tool.

Higher rates dim the appeal of non-yielding gold.

"Prices are wobbling above US$4,100 as geopolitics stoke inflation fears and year-end Fed hike bets," said Lukman Otunuga, a senior research analyst at FXTM, adding that a stronger dollar and Treasury yields could weigh further on gold.

"The technical picture adds to the downside risk. A sustained break below US$4,100 opens a path towards US$4,000, while a hold above it could trigger a rebound towards US$4,200."

On the geopolitical front, the number of vessels transiting the Strait of Hormuz fell to the lowest in more than two months after attacks on tankers in the key waterway reached their highest last week since the start of the Middle East war, shipping data showed.

Among other metals, spot silver fell 2.2% to US$58.8476, platinum strengthened 1.6% to US$1,656.88 and palladium climbed 0.8% to US$1,133.65.

Uploaded by Tham Yek Lee