Gold slips to $4,045.29 as oil-fuelled inflation fears keep the Fed cautious
Gold edged lower on Wednesday, giving back part of the previous session's roughly 1% gain, as an attack on a Saudi Arabian refinery pushed oil higher and revived inflation worries just hours before the Federal Reserve's policy decision.
Spot gold fell 0.3% to $4,045.29 an ounce by 0347 GMT, while US gold futures for December delivery slipped 0.4% to $4,059.00. Soni Kumari, an analyst at ANZ, said bullion was trading on rate expectations and energy-driven inflation risk, adding that the Fed "will remain cautious, which remains a short-term key headwind for gold."
The supply scare in the Middle East matters for bullion because costlier energy feeds inflation expectations, which in turn argue for US rates staying higher for longer, raising the opportunity cost of holding an asset that pays no yield. Traders largely expect the Fed to hold rates steady at its meeting, whose decision is due at 1800 GMT, but are pricing about an 84% chance of a December increase, according to the CME's FedWatch Tool. The central bank's preferred inflation gauge, the Personal Consumption Expenditures data, follows on Thursday.
The backdrop is weighing on forecasts. Analysts cut their 2026 gold price outlook for a second consecutive quarter, citing high Treasury yields, a strong dollar and expectations of prolonged tight policy, though they still expect a recovery in 2027, according to Token Times. The same survey showed platinum and palladium forecasts trimmed for a third straight quarter.
Among other precious metals, spot silver slid 0.6% to $54.06 an ounce, platinum lost 0.4% to $1,533.64 and palladium gained 0.5% to $1,030.80.
