Gold steadies below US$4,300 as markets await Fed rate decision
Traders now price in a 92% chance of the US central bank hiking rates
Gold hovered around US$4,290 an ounce on Wednesday as traders awaited the US Federal Reserve's decision on interest rates. Concerns about high oil prices fueling inflation and the likelihood of a rate hike weighed on the precious metal. The 10-year US Treasury yield reached its highest level in nearly two decades, further supporting the expectation of a policy move.
Should the Fed decide to hike rates, gold's role as a non-interest-bearing asset would make it less attractive, potentially pushing its price lower. However, if the central bank holds off on additional hikes or appears indecisive, investors may demand higher yields on long-term bonds, putting further downward pressure on gold. With gold down over 3 percent in September, traders are closely watching the Federal Reserve's statement for any signs of a shift in monetary policy.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Gold declines below $4,300 as US yields climb, Fed rate decision looms fxstreet.com
- Gold wavers around S$4,300 as traders await Fed rate decision businesstimes.com.sg
- Gold muted as investors brace for Fed rate decision brecorder.com
- Gold muted as investors brace for Fed rate decision nst.com.my
- Government bond yields edge higher on OMO sales, Fed rate bets economictimes.indiatimes.com
- Gold price may dip with Fed rate hike bangkokpost.com
- Gold Steadies Below $4,300 as Markets Await Fed Rate Decision bloomberg.com
