Home›Forex›Major Pairs›Gold holds steady as Fed PCE data in focus

Gold holds steady as Fed PCE data in focus

XAU/USD was around $4,185 as markets pared expectations for an October Fed hike, with the CME FedWatch tool placing the probability at 43% after a weaker rate outlook.

Reported · Written up by our desk · Major Pairs

Gold prices were little changed on Wednesday, consolidating after recovering from a seven-week low earlier in the week, according to an FXStreet market update.

The report said the pullback in the US dollar and US Treasury yields offered support ahead of the US Personal Consumption Expenditures, PCE, Price Index data scheduled for 12:30 GMT.

FXStreet linked the more cautious rate expectations to comments from New York Fed President John Williams, who said there was no need for urgency after the Fed’s September meeting and suggested one further upward adjustment of the federal funds target range could be appropriate later this year if inflation returns toward target.

The update added that CME FedWatch now shows a 43% chance of an October rate hike, down from roughly 70% earlier this week, while economists expect the core PCE Price Index to rise 0.3% month over month in August, up from 0.2% in July.

Latest closeGold $4,147.50 ▼4.0%

More like this

Sources