Gold eases as investors await Fed signals on rate path
GLD•Spot gold fell 0.6% to $4,115.50 per ounce in early Asian trade as investors awaited guidance from next week’s Federal Reserve meeting. Traders saw a 16% chance of a rate hike next week and a 90% likelihood of an increase in December.
1. Gold prices slip
Spot gold fell 0.6% to $4,115.50 per ounce by 0040 GMT, after reaching its lowest level since October 15 at $4,104.33 on Wednesday. US December gold futures dropped 0.4% to $4,132.30.
2. Focus on Fed outlook
Investors are watching the Fed’s October 27-28 policy meeting and next week’s Personal Consumption Expenditures data, a key inflation gauge. Nearly all economists polled expected the Fed to hold rates this month and raise them in December. Higher interest rates typically weigh on gold by increasing the opportunity cost of holding bullion, which pays no interest.
