Gold falls under Fed pressure
Gold prices declined ahead of the Federal Reserve's (Fed) interest rate decision scheduled for next week.
During Asian trading on Tuesday, October 20, spot gold fell 0.3% to $4,126.84 per ounce, while US gold futures for December delivery declined 0.3% to $4,146. Investors are focused on the Fed's October 27–28 meeting and the upcoming Personal Consumption Expenditures (PCE) inflation report.
According to CME FedWatch data, markets are pricing in an 83% probability that the Fed will keep interest rates unchanged at its October meeting and a 94% probability of a rate hike in December. Expectations of elevated interest rates are weighing on non-yielding gold, while other precious metals also recorded losses. Silver fell 0.7% to $56.69, and palladium declined 0.7% to $1,112.08. Platinum remained relatively unchanged at $1,639.65.
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