Gold holds steady

Wed Sep 16 2026

Gold edged lower on Wednesday as market participants adopted a cautious stance ahead of the Federal Reserve's monetary policy decision, which is widely expected to result in an interest rate hike.

Spot gold fell 0.1% to $1,888.48 per ounce at 01:43 GMT, having hit its lowest level in over a month on Monday. US gold futures for December delivery also dropped 0.1% to $1,828.10, according to Reuters.

CME Group’s FedWatch tool indicates that traders currently see a 92.4% probability of a US interest rate hike of at least 25 basis points later today.

Frank Walbaum, a market analyst at the trading platform Naga.com, said, "A hawkish stance from the Federal Reserve could lead to further declines in gold prices, whereas any dovish remarks might temper bets on rate hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East."

Gold is often viewed as an inflation hedge, but rising interest rates increase the opportunity cost of holding the non-yielding precious metal.

The dollar held onto recent gains, while oil prices remained above $100 per barrel. A rising dollar increases the cost of gold—priced in the U.S. currency—for holders of other currencies, while high oil prices add to inflationary pressures.

As for other precious metals, spot silver held steady at $63.67 per ounce, and platinum fell 0.3 percent to $1,770.47, while palladium rose 1 percent to $1,301.61.

Source: http://in.reuters.com