Gold edges lower ahead of Fed rate decision, Warsh comments
GLD•Spot gold fell 0.3% to $4,044.54 an ounce as investors awaited the Fed's rate decision and comments from Chair Kevin Warsh. Oil rose more than 1%, while traders priced in an 84% probability of a December rate hike.
1. Gold dips before Fed decision
Spot gold edged 0.3% lower to $4,044.54 per ounce by 11:46 a.m. EDT, while U.S. gold futures for December delivery fell 0.4% to $4,057.30. The Fed was due to announce its rate decision at 2 p.m. EDT, followed by a press conference with Warsh.
2. Oil and rate expectations
The Fed was widely expected to leave its benchmark rate unchanged at 3.75%-4.00%. Traders priced in an 84% probability of a hike in December, while higher oil prices—up more than 1% after an attack on a Saudi refinery—stoked inflation concerns. U.S. Personal Consumption Expenditures data was due Thursday.
3. Other precious metals
Analysts lowered their 2026 precious metals price forecasts in polls, citing weaker demand, elevated Treasury yields and a strong U.S. dollar, though the metals were still expected to rebound in 2027. Spot silver fell 1.2%, platinum gained 0.2% and palladium declined 0.7%.
