Gold eases as stronger dollar weighs, Fed meeting in focus
GLD•Spot gold fell 0.1% to $4,013.70 per ounce as the dollar strengthened, with investors awaiting the Federal Reserve’s policy decision on Wednesday and inflation data on Thursday.
1. Gold edges lower
Spot gold was down 0.1% at $4,013.70 per ounce by 0045 GMT on Tuesday, while U.S. gold futures for December delivery fell 0.3% to $4,027.10. A firmer dollar weighed on bullion priced in dollars.
2. Rates in focus
Markets are awaiting the Federal Reserve’s policy decision on Wednesday and Personal Consumption Expenditures data on Thursday, a key inflation gauge watched by the central bank as it targets 2% inflation. Traders were pricing in an 11% chance of a rate hike this week and an 82% chance of a December increase. Higher interest rates tend to reduce the appeal of non-yielding gold.
