Gold prices fell in Asian trading on Tuesday as investors awaited next week’s US Federal Reserve meeting for signals on the future path of interest rates, while also awaiting inflation data that could influence monetary policy decisions.
اضافة اعلان
Spot gold fell 0.3% to $4,126.84 per ounce by 01:02 GMT. US gold futures for December delivery also declined by 0.3% to $4,146.
Markets are focused on the Federal Reserve’s meeting scheduled for October 27–28, as well as US personal consumption expenditures (PCE) data due next week. The data are among the key indicators the central bank monitors to measure inflation as it seeks to achieve its 2% target.
According to CME Group’s FedWatch tool, markets are pricing in an 83% probability that interest rates will remain largely unchanged at the next meeting, while expectations of a rate increase in December stand at 94%.
The Fed raised its benchmark interest rate by 25 basis points in September, bringing it to a range of 3.75% to 4%.
Higher interest rates typically weigh on gold, which does not yield interest, by increasing the cost of holding it compared with interest-bearing assets. Markets are also monitoring geopolitical developments in the Middle East.
Elsewhere in precious metals, silver fell 0.7% to $56.69 per ounce, platinum remained steady at $1,639.65, and palladium declined 0.7% to $1,112.08.
Source: Al-Ghad.
