Gold Steady as US Midterms, Iran Talks in Focus
Gold prices were little changed around $3,930 an ounce on Wednesday as investors tracked Middle East diplomacy and awaited US midterm results for clues on interest rates and fiscal policy. Early results showed Democrats making gains and leading in key races, raising the prospect of a shift in congressional control that could constrain President Donald Trump’s agenda and affect expectations for US spending and debt. Meanwhile, mixed signals on US-Iran negotiations continued to lend support to bullion, while oil hovered near a four-week low as Tehran and Washington reviewed proposals from mediators following reported US airstrikes on Iran’s Qeshm Island. Lower energy prices could ease inflation concerns and reduce expectations of prolonged monetary tightening, further supporting non-yielding gold. However, markets still see a 78% chance of a Fed rate hike in December, according to CME’s FedWatch Tool.
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Gold prices were little changed around $3,930 an ounce on Wednesday as investors tracked Middle East diplomacy and awaited US midterm results for clues on interest rates and fiscal policy. Early results showed Democrats making gains and leading in key races, raising the prospect of a shift in congressional control that could constrain President Donald Trump’s agenda and affect expectations for US spending and debt. Meanwhile, mixed signals on US-Iran negotiations continued to lend support to bullion, while oil hovered near a four-week low as Tehran and Washington reviewed proposals from mediators following reported US airstrikes on Iran’s Qeshm Island.
Lower energy prices could ease inflation concerns and reduce expectations of prolonged monetary tightening, further supporting non-yielding gold. However, markets still see a 78% chance of a Fed rate hike in December, according to CME’s FedWatch Tool.