Global gold prices stabilized above $4,000 per ounce ahead of the U.S. Federal Reserve’s decision on interest rates. Investors expect the U.S. regulator to leave them unchanged for now. Bloomberg reports, UNN writes.
Details
As of the morning of October 27, the spot price of gold stood at $4,011.58 per ounce, down 0.1%. The precious metal had risen by approximately 0.5% the previous day.
At the same time, gold remains under pressure from inflation risks, high energy prices, and stock market instability. Last Friday, its value fell to its lowest level since mid-July.
What investors expect from the Fed’s decision
The markets’ main focus is on the upcoming decision by the U.S. central bank on interest rates.
Traders currently estimate the probability of a rate hike this week at approximately 10%. At the same time, further increases in energy prices could force the Fed to resume tightening monetary policy by the end of the year.
High interest rates usually restrain the growth of gold prices, as the metal does not generate interest income.
Amid expectations of the Fed’s decision, silver fell by 0.2% to $53.86 per ounce. Platinum and palladium prices changed little, while the U.S. dollar strengthened slightly.