Gold lingers near three-month low ahead of Fed policy meeting
GLD•Spot gold fell 0.2% to $3,987.45 an ounce, near a three-month low, ahead of this week's Federal Reserve policy meeting. Bullion fell 4% last week, its biggest weekly decline since June.
1. Gold near three-month low
Spot gold was down 0.2% at $3,987.45 per ounce by 0037 GMT on Monday, after reaching its lowest level since mid-July in the previous session. US gold futures for December delivery fell 0.2% to $4,000.80. Bullion posted a 4% weekly fall on Friday, its biggest since June.
2. Markets await Fed meeting
Investors are watching this week's Federal Reserve meeting and Personal Consumption Expenditures data for clues on the outlook for US interest rates. Traders priced in about a 9% chance of an interest rate hike this week, while expectations for a hike in December remained at 80%. Elevated energy prices have bolstered expectations of higher-for-longer rates, increasing the opportunity cost of holding non-yielding bullion.
