Gold slips as investors weigh Fed rate outlook
GLD•Spot gold fell 0.3% to $4,126.84 per ounce in early Asian trade as investors awaited the Fed’s October 27-28 decision and next week’s US inflation data.
1. Gold prices edge lower
Spot gold fell 0.3% to $4,126.84 per ounce by 0102 GMT, while US December gold futures dropped 0.3% to $4,146.00.
2. Investors assess rate outlook
Investors are focused on the Fed’s October 27-28 policy meeting and next week’s US Personal Consumption Expenditures data. Traders are pricing in an 83% chance the Fed will leave rates largely unchanged next week, while expectations for a December hike remain at 94%. The Fed raised its benchmark overnight rate by 25 basis points in September, to a range of 3.75%-4.00%. Higher rates typically weigh on gold because bullion does not pay interest.
3. Other metals also fall
Spot silver slid 0.7% to $56.69 per ounce, platinum was steady at $1,639.65, and palladium dropped 0.7% to $1,112.08.
