Gold slips as investors await Fed rate signals
The central bank will skip rate hikes for October, say economists polled by Reuters
Gold prices fell on Wednesday as traders awaited the US Federal Reserve's decision on interest rates for the upcoming week. According to a Reuters poll of economists, the central bank would hold rates steady in October but raise them in December. Gold prices were down 0.1 percent at $4,118.64 per ounce and US$4,137.60 for December delivery futures.
The Fed's focus is on the October 27-28 policy meeting and the upcoming Personal Consumption Expenditures data. Expectations for a rate hike in December stand at 90 percent, while the chance of a rate hold is at 84 percent. Higher interest rates generally have a negative impact on gold prices, as they raise the opportunity cost of holding non-interest-bearing assets like bullion.
Meanwhile, other metals like silver, platinum, and palladium also experienced minor changes in price.
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