Gold stable as investors prepare for Fed policy meeting

A selection of gold jewelery on display in a shop window in the Dubai Gold Souk in Deira, United Arab Emirates.

Yui Mok | Pa pictures | Getty Images

Gold prices were flat on Monday, having fallen about 1.3% in the previous session, as investors cautiously waited for the United States. Federal Reserve’s policy meeting for benchmarks on its path to higher tariffs.


Spot gold was little changed at $1,642.59 an ounce at 0046 GMT, while US gold futures rose 0.1% to $1,645.90.

The dollar index was stable, while the reference 10-year Treasury yields held above the 4% threshold.

U.S. consumer spending rose more than expected in September as underlying inflationary pressures continued to bubble, keeping the Fed on track to raise interest rates by three-quarters of a percentage point more at the November 1-2 meeting.

Rate hikes in the United States increase the opportunity cost of holding zero-return bullion, while boosting the dollar, against which it is valued.

The European Central Bank (ECB) could raise interest rates again by 75 basis points at its next policy meeting in December, ECB Governing Council member Klaas Knot said on Sunday.

The Diwali festival sparked new demand for physical gold in India last week, while consumers in China’s main hub were still subject to high premiums as supply remained low.

Assets of SPDR Gold Trustthe world’s largest gold-backed exchange-traded fund, fell 0.28% to 922.59 tonnes on Friday.

Cash fell 0.3% to $19.17 an ounce, platinum fell 0.2% to $942.60 and palladium rose 0.7% to $1,914.06.

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