Gold holds steady as investors await US interest rate decision

Gold prices stabilized at $4,300.96 per ounce, after touching their lowest level in over a month, as investors await the Federal Reserve's monetary policy decision. Markets are strongly betting on a quarter-point interest rate hike. Analysts believe that Fed Chair Kevin Warsh's wording of the decision will be more important than the hike itself.

Gold prices stabilized on Tuesday at $4,300.96 per ounce in spot trading, after touching their lowest level in over a month in the previous session. Investors are awaiting the Federal Reserve's monetary policy decision, scheduled to be announced on Wednesday following a two-day meeting. Financial markets are strongly betting on a quarter-point hike in the benchmark interest rate to a range of 3.75% to 4.00%. Analyst Tony Sycamore from IG believes that Fed Chair Kevin Warsh's wording of the decision will be more important than the hike itself, noting that a signal of the start of a tightening cycle would be a blow to gold, while a signal of a more moderate pace would be supportive. US gold futures fell 0.3% to $4,341.10. US 10-year Treasury yields reached 5% for the first time since October 2023. In other metals, silver rose 0.1% to $63.28, platinum fell 0.1% to $1,757.46, and palladium dropped 0.7% to $1,283.61.