Gold eases on firmer dollar ahead of Fed decision
GLD•GLD•GLD•GLD•Spot gold fell 0.3% to $4,003.59 an ounce and U.S. gold futures dropped 0.5% to $4,016.10 as the dollar held near a two-week high ahead of the Federal Reserve decision. Traders priced in an 11% chance of a rate hike this week and an 82% chance of one in December.
Gold prices edged lower on Tuesday as a firmer dollar weighed on bullion and investors awaited the Federal Reserve’s policy decision on Wednesday. Spot gold was down 0.3% at $4,003.59 per ounce, while December U.S. gold futures fell 0.5% to $4,016.10.
Traders priced in about an 11% chance of a rate hike this week and an 82% chance of an increase in December. U.S. personal consumption expenditures data, the Fed’s preferred inflation gauge, is due Thursday. Higher interest rates can weigh on gold’s appeal as a non-yielding asset.
Spot silver fell 1.6% to $53.06 per ounce, platinum lost 1.3% to $1,506.94, and palladium dropped 1.8% to $1,030.75. Gold fell 4% last week, its steepest weekly decline in about four months.
