Gold Little-Changed as Markets Await Fed Decision
Gold prices were little changed near $4,000 an ounce on Monday after hitting a more than three-month low of $3,975 on Friday, as falling oil prices eased inflation concerns ahead of this week’s central bank meetings. Oil retreated from last week’s surge but remained near six-month highs amid hopes of easing US-Iran tensions, with potential supply disruptions still posing inflation risks. The Fed is scheduled to announce its rate decision on Wednesday, with policymakers widely expected to hold rates steady following September’s hike. Meanwhile, the probability of another rate increase in December has climbed above 80%, according to the CME FedWatch Tool. Investors also await Thursday’s US PCE inflation data for clues on the rate outlook, while attention is turning to the November 3 US midterm elections. Elsewhere, the ECB and the Bank of Japan are also expected to keep rates unchanged, while the Bank of Canada is widely expected to deliver its first rate hike since 2023.
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Gold prices were little changed near $4,000 an ounce on Monday after hitting a more than three-month low of $3,975 on Friday, as falling oil prices eased inflation concerns ahead of this week’s central bank meetings. Oil retreated from last week’s surge but remained near six-month highs amid hopes of easing US-Iran tensions, with potential supply disruptions still posing inflation risks. The Fed is scheduled to announce its rate decision on Wednesday, with policymakers widely expected to hold rates steady following September’s hike. Meanwhile, the probability of another rate increase in December has climbed above 80%, according to the CME FedWatch Tool.
Investors also await Thursday’s US PCE inflation data for clues on the rate outlook, while attention is turning to the November 3 US midterm elections. Elsewhere, the ECB and the Bank of Japan are also expected to keep rates unchanged, while the Bank of Canada is widely expected to deliver its first rate hike since 2023.