Gold slips on higher oil; markets assess Warsh comments after Fed holds rates steady - CNBC

AI desk brief

Gold fell 0.5% to $4,039.39/oz and December futures settled 0.6% lower at $4,051.60 after the Fed held rates at 3.75%-4.00% and markets digested Chair Kevin Warsh’s comments. Higher oil and firmer Treasury yields pressured bullion, with the 10-year yield up 4.11 bps to 5.034% and traders pricing an 86% probability of a December rate hike.

The Fed said inflation remains elevated and upgraded its view on the economy, while traders now await Thursday’s PCE data for the next policy signal. Broader precious metals were also weaker, with silver down 1.4% to $53.58/oz, platinum off 0.4% to $1,534.50 and palladium down 1.1% to $1,014.50; Reuters also noted China’s September Hong Kong gold imports rose more than 28% m/m to a five-month high on Golden Week restocking and investor demand.