Gold edges higher as yields retreat, Fed decision in focus
GLD•Spot gold rose 0.3% to $4,137.94 an ounce as US Treasury yields fell and investors awaited the Federal Reserve’s October 27-28 meeting. December gold futures settled 0.2% higher at $4,150 an ounce.
1. Yields support gold
Gold rebounded from an earlier near one-week low as the benchmark US 10-year Treasury yield fell for a second consecutive session, reducing the opportunity cost of holding the non-yielding metal.
2. Fed outlook in focus
Investors are watching next week’s Fed meeting and US PCE report for clues on future rate moves. Markets priced in an 88% chance of a December rate increase, while nearly all economists surveyed expected rates to hold steady this month and rise in December. Analyst Peter Grant said gold could remain range-bound, with risks skewed to the downside.
