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Gold Wavers Around S$4,300 as Traders Await Fed Rate Decision
Traders priced in a 95% chance of a rate hike as oil-driven inflation fears and higher Treasury yields pressured bullion.
- Gold edged 0.2 per cent higher to trade just above $4,300 an ounce on Wednesday, while traders price in a 95 per cent chance the Federal Reserve will hike interest rates today.
- Crude oil extended its surge as Saudi Arabia's East-West pipeline remains offline following attacks last week, pushing the 10-year Treasury yield to its highest level in almost two decades.
- Spot gold traded at $4,306.57 an ounce in New York after earlier falling 0.9 per cent; silver rose 1 per cent to $63.88, and The Bloomberg Dollar Spot Index increased 0.2 per cent.
- Gold prices are flirting with technical levels that could see funds turn net-bearish, according to Ryan McKay, senior commodity strategist at Securities, though near-term weakness may signal a buying opportunity.
- Despite near-term headwinds, many investors maintain bets that bullion will grind higher, expecting the metal to rediscover its traditional value as a portfolio hedge amid central bank buying and dollar-debasement concerns.
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The Fed's First Hike in Three Years: Why the Dollar and Gold Are Rising Together
TODAY’S NUMBERS: 5.00% (US 10-year Treasury yield, first close above that level since 2023) · 99.5 (Dollar Index, its highest in weeks) · $4,300 (Gold, per ounce) Two assets that almost never rally together are rallying together: investors are betting on Fed resolve today while reserve managers hedge against it over the long run
·Plovdiv, Bulgaria
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Coverage Details
Total News Sources21
Leaning Left0Leaning Right3Center1Last UpdatedBias Distribution75% Right
Bias Distribution
- 75% of the sources lean Right
75% Right
C 25%
R 75%
Factuality
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