Gold prices fluctuate near USD 4,000 amid Federal Reserve policy focus

Gold prices have remained largely above the USD 4,000 per ounce threshold, driven by shifting expectations regarding Federal Reserve interest rate decisions and declining real yields on US Treasury bonds. December COMEX gold futures recently closed at USD 4,074.60 per ounce, though spot prices have seen downward pressure as investors weigh potential rate hikes.

The Federal Open Market Committee recently decided to maintain interest rates between 3.75 percent and 4.00 percent, pausing adjustments until after the US midterm elections to gather more economic data. Market participants are currently monitoring US inflation metrics, including consumer and producer price indices, as well as personal consumption expenditures.

While lower real yields generally support gold by making non-yielding assets more attractive, a hawkish stance from the Federal Reserve could pressure prices. Additionally, geopolitical developments in the Middle East continue to influence market sentiment and commodity pricing.