Gold Holds Steady Below $4,300 Ahead of Fed Rate Decision
Gold prices remained stable below the $4,300 level as traders awaited a Federal Reserve policy decision. High oil prices and inflation concerns have increased expectations for rate hikes, with markets pricing in a 92% chance of an increase ahead of Wednesday's announcement. The US 10-year Treasury yield reached its highest level since 2007 at 5.04%, reflecting rising borrowing costs that typically weigh on gold demand due to the metal’s lack of interest-bearing properties. Gold has fallen over 3% in September after peaking above $4,700 an ounce in late August as investors recalibrated their expectations for Fed policy. Despite this decline, many still see potential for a rebound if bullion regains its role as a portfolio hedge against inflation and economic uncertainty.
Topics: fed rate decision gold inflation oil prices