Spot gold traded near $4,007 an ounce on Tuesday, down about 0.2% on the day, as the dollar held close to a one-week high and traders waited for the Federal Reserve's decision on Wednesday. US December gold futures were around $4,019.70.
The metal fell below $4,000 for the first time since mid-July last week, finishing with a weekly loss of roughly 4%, its worst in about four months. One analyst quoted by Reuters said a break below $3,900 could open the way toward $3,800; that is one view, not a forecast we endorse.
What the market is watching
- Fed decision, Wednesday: Fed officials have signalled no further hike this week. CME FedWatch showed about an 11% chance of a hike at this meeting and about 82% for a December increase.
- PCE inflation, Thursday: the Fed's preferred inflation gauge follows the next day.
- Other metals: spot silver slipped 0.7% to about $53.53, platinum 0.8% to $1,514.16 and palladium 1.5% to $1,034.75.
Higher rate expectations raise the opportunity cost of holding non-yielding gold and tend to support the dollar, which is the link behind Tuesday's softness. See real yields and currencies for the mechanism.
Round numbers such as $4,000 attract attention but are not guaranteed support. This brief is market information, not a trading recommendation.