Gold muted as investors brace for Fed rate decision
GLD•Other precious metals
Among other metals, spot silver XAG= steadied at $63.67 per ounce, platinum XPT= edged 0.3% lower to $1,770.47, while palladium XPD= rose nearly 1% to $1,301.61.
Gold steadies ahead of Fed decision
Gold prices were subdued on Wednesday as market participants hunkered down ahead of the U.S. Federal Reserve's policy decision, where a rate hike is widely expected.
Spot gold XAU= was down 0.1% at $4,288.48 per ounce, as of 0143 GMT, after scaling a more than one-month low on Monday. U.S. gold futures GCcv1 for December delivery were also down 0.1% at $4,328.10.
Geopolitical concerns and analyst views support gold
On the geopolitical front, Saudi Arabia issued security alerts over a range of territory, including in the holy city of Mecca and the second-largest city, Jeddah, following a week of attacks from Iran-aligned fighters that have drawn it deeper into the Middle East war.
Commerzbank said it was somewhat surprising that gold prices had not come under greater pressure so far. It noted that gold's resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as well as a recent rise in U.S. political risks.
Rate expectations, dollar strength and oil keep pressure on bullion
Traders are now pricing in a 92.4% chance of at least a 25-basis-point U.S. rate hike later in the day, according to CME FedWatch. The policy decision will be followed by a press conference from Fed Chair Kevin Warsh.
