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Gold prices hover near $4,000 amid Federal Reserve policy uncertainty
Gold prices are attempting to stabilize around the $4,000 per ounce mark following a sharp decline that saw bullion fall below this psychological threshold for the first time since mid-July. On Tuesday, spot gold edged lower by approximately 0.3 percent to $4,003.59, while U.S. gold futures for December delivery declined 0.5 percent to $4,016.10.
The market is currently focused on the Federal Reserve’s two-day policy meeting, which concludes Wednesday. While investors largely expect the Fed to pause interest rate hikes this week, expectations for a rate increase in December remain high, with market probabilities ranging between 81 and 89 percent according to various data sources. A stronger U.S. dollar and elevated inflation concerns, driven by energy prices, have placed downward pressure on the non-yielding metal.
Other precious metals also experienced declines, with silver, platinum, and palladium falling more sharply than gold. In India, local gold rates showed signs of recovery in cities like Delhi, supported by a weaker rupee and international market movements.
Entities
Bloomberg · CFTC · CME Group · Delhi · Federal Open Market Committee · Federal Reserve · Kevin Warsh · Reuters · U.S. dollar
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] Markets expect the Federal Reserve to hold interest rates steady during the current meeting. economymiddleeast.com · cryptocompass.com · www.gazeteabc.com · www.trade2win.com · financefeeds.com · +1 more
- [● 2 SOURCES] Spot gold fell 0.3 percent to $4,003.59 per ounce on Tuesday. economymiddleeast.com · financefeeds.com
- [○ 1 SOURCE] Global gold ETF holdings reached 101.4 million ounces, the highest level since August 2022. www.gold-eagle.com
- [● 3 SOURCES] The probability of a December interest rate hike is priced at approximately 82 percent. cryptocompass.com · www.gazeteabc.com · financefeeds.com
- [○ 1 SOURCE] Gold prices in Delhi recovered on Monday due to a weaker rupee. newsable.asianetnews.com
- [● 2 SOURCES] U.S. gold futures for December delivery declined 0.5 percent to $4,016.10. economymiddleeast.com · financefeeds.com
- [● 2 SOURCES] Gold prices recently hit a three-month low of $3,975.23. www.trade2win.com · financefeeds.com
- [○ 1 SOURCE] Central banks are accumulating gold at four times their usual pace. www.gold-eagle.com