Commodities
Home›Commodities›Precious Metals›Gold slips as markets brace for a Fed rate decision
Gold slips as markets brace for a Fed rate decision
Gold fell to 4,047 USD per ounce, with markets pricing in a more than 33% chance of a rate move on Wednesday.
Gold declined to 4,047 USD per ounce on Tuesday, wiping out gains from the prior session, as investors weighed renewed expectations for Federal Reserve action.
Action Forex said gold has faced added pressure from falling oil prices after Donald Trump said there were “good negotiations” with Iran, which briefly eased inflation concerns even as he warned strikes could resume if talks fail.
The Fed meeting starts Tuesday and concludes Wednesday evening, with a rate decision and accompanying comments set for release, and markets currently estimate the probability of a hike on Wednesday at above 33%. The report added that traders see a hike as a way to reinforce Chairman Kevin Warsh’s commitment to fighting inflation.
Technically, Action Forex noted the market broke down from the 4,090 USD area and moved to 4,036 USD, with the setup pointing to potential further downside toward 3,940 USD, while any short term rebound could be limited by the Fed’s policy outlook.
Latest closeGold $4,078.90 ▲0.3%