World gold prices edged lower on Wednesday as traders awaited the minutes or decision from the US Federal Reserve and key inflation data for clues on the pace of future interest rate hikes. To that end, the Federal Open Market Committee (FOMC) will release the minutes of its September 20-21 meeting at 18:00 GMT later in the day. The US inflation reading is due on Thursday and could reinforce expectations of another big rate hike at its November meeting.

Federal Reserve Bank of Cleveland President Loretta Mester said Tuesday that, even with a large number of interest rate hikes this year, the central bank has not yet controlled surging inflation and needs to press ahead with tightening its existing monetary policy. Gold is considered a hedge against inflation and economic uncertainty. Rising interest rates could reduce the appeal of the asset, which does not pay interest.



Spot gold fell 0.1% to $1,663.60 an ounce, as of 0055 GMT, hovering near a one-week low hit on Tuesday. U.S. gold futures were down 0.8% at $1,673.30. Spot silver fell 0.6% to $19.08 an ounce, platinum rose 0.3% to $888.37 and palladium fell 0.5% to $2,129.99. The dollar index and benchmark 10-year U.S. Treasury yields were steady in early Asian hours.

The International Monetary Fund warned on Tuesday that the collision of inflation, war-fueled energy, food crises and sharply higher interest rates would push the world into an imminent recession. With that in mind, Peru plans to launch small-scale gold mining. Mining Minister Alessandra Herrera said on Tuesday that amid growing international pressure, small-scale gold mining is aimed at shedding more light on the precious metal’s supply chain in South America’s top producer.

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