Gold Recovers Ahead of Fed Announcement as Rate Increase Expectations Persist - Yahoo Finance UK

AI desk brief

Gold rebounded 0.8% to $4,326.44/oz and futures gained 0.8% to $4,366.50/oz ahead of the Fed decision, but the move comes with the market pricing a 92% chance of a rate increase. Silver rose 1.4% to $64.59/oz and platinum gained 0.7% to $1,792.43/oz, while the dollar index was flat at 99.57.

The bigger macro overhang remains rising real-rate pressure: the US 10-year yield briefly hit 5.04%, its highest since 2007, and the article notes that higher borrowing costs and energy-driven inflation concerns have been weighing on gold, which is still more than 3% lower since the start of September and below late-August levels above $4,700/oz. Attention now shifts to Fed guidance for signs of whether the tightening cycle continues beyond this meeting.