Gold eases on firmer dollar ahead of Fed decision
GLD•Spot gold fell 0.2% to $4,007.29 an ounce as the US dollar held near a one-week high and investors awaited the Fed decision on Wednesday. Traders priced in an 11% chance of a rate hike this week and an 82% chance of one in December.
1. Gold slips ahead of Fed
Spot gold eased 0.2% to $4,007.29 per ounce by 0321 GMT, while US gold futures for December delivery dropped 0.5% to $4,019.70. The dollar held near a one-week high, reducing the appeal of bullion priced in greenbacks for overseas buyers.
2. Markets await key data
Investors are watching Wednesday’s Federal Reserve decision and Thursday’s Personal Consumption Expenditures data, the central bank’s preferred inflation gauge. Traders priced in about an 11% chance of a rate hike this week and an 82% chance of a December increase. Gold fell 4% last week, its worst weekly decline in about four months, after dropping below $4,000 for the first time since mid-July.
