Gold muted as investors brace for Fed rate decision
Gold prices were subdued on Wednesday as market participants hunkered down ahead of the US Federal Reserve’s policy decision, where a rate hike is widely expected. Spot gold was down 0.1% at $4,288.48 per ounce, as of 0143 GMT, after scaling a more than one-month low on Monday. US gold futures for December delivery were also down 0.1% at $4,328.10. Traders are now pricing in a 92.4% chance of at least a 25-basis-point US rate hike later in the day, according to CME FedWatch. The policy decision will be followed by a press conference from Fed Chair Kevin Warsh. “A hawkish Fed could further pull gold down, while any soft messaging may ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East,” said Frank Walbaum.