Gold Steadies Below $4,300 as Markets Await Fed Rate Decision
Gold was steady as high oil prices continued to fuel inflation concerns and keep interest-rate hike bets a near-certainty ahead of the Federal Reserve’s policy decision later Wednesday.
Gold prices were steady below $4,300 as markets awaited the Federal Reserve's policy decision. High oil prices continued to fuel inflation concerns, making interest-rate hike bets a near-certainty.
According to FXStreet, gold was trading near $4,285 in the early Asian session. Elevated US Treasury yields, which reached 5.00% for the 10-year note, weighed on gold prices as they raise the opportunity cost of holding non-yielding bullion.
Traders expect the Fed to raise the benchmark overnight interest rate by 25 bps to the 3.75%-4.00% range, with nearly 92.4% odds of a quarter-point hike, and signal further tightening ahead.
Brief written by urgent.news from Bloomberg, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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