Gold Climbs as Bank of England Keeps Rates on Hold

The gold market advanced after the Bank of England opted to hold its key rate at 3.75% during the September policy meeting. Three committee members backed a 25-basis-point increase, matching forecasts.

Officials pointed to persistent inflation, with UK CPI rising to 3.1% in August and set to climb further due to the global energy crisis from the war in Iran. Policy aims to return inflation sustainably to the 2% target.

Spot gold gained 1.58% to £3,237.07 per ounce versus the pound and 1.48% to $4,325.60 in dollars. Monaxa risk head Artem Bakushev noted the unanimous hold signals committee patience, with the next data round on wages, CPI and growth likely to force a clearer stance.