Gold Steady Ahead of Fed Rate Call
Gold prices hovered around $4,000 an ounce on Tuesday after recently hitting a more than three-month low, as falling oil prices and bargain-hunting ahead of the Federal Reserve’s policy decision offered some support. Crude prices fell for a second consecutive session amid renewed diplomatic efforts to defuse US-Iran tensions, helping ease near-term inflation concerns. However, energy prices remain elevated, keeping inflation risks in focus and sustaining expectations of further monetary tightening, which could weigh on non-yielding gold. The Federal Reserve is widely expected to leave interest rates unchanged this week, with markets focused on policymakers’ forward guidance for clues about the rate outlook. Markets are pricing in a roughly 74% chance of a rate hike in December, according to the CME FedWatch Tool. Investors will also watch upcoming US GDP and PCE price index data for further insight into the economic outlook and the Fed’s policy path.
Story updates
Gold prices hovered around $4,000 an ounce on Tuesday after recently hitting a more than three-month low, as falling oil prices and bargain-hunting ahead of the Federal Reserve’s policy decision offered some support. Crude prices fell for a second consecutive session amid renewed diplomatic efforts to defuse US-Iran tensions, helping ease near-term inflation concerns. However, energy prices remain elevated, keeping inflation risks in focus and sustaining expectations of further monetary tightening, which could weigh on non-yielding gold.
The Federal Reserve is widely expected to leave interest rates unchanged this week, with markets focused on policymakers’ forward guidance for clues about the rate outlook. Markets are pricing in a roughly 74% chance of a rate hike in December, according to the CME FedWatch Tool. Investors will also watch upcoming US GDP and PCE price index data for further insight into the economic outlook and the Fed’s policy path.