Gold steadied near $4,000 an ounce on Tuesday as traders awaited the Federal Reserve's interest-rate decision. Bullion was little changed after gaining 0.5% in the prior session. Oil prices fell for a second day on diplomatic efforts to de-escalate US-Iran tensions, while stocks were set to rise on renewed AI enthusiasm following last week's selloff.
Still, gold remains under pressure from stubbornly high energy prices and the broader unwind of the AI trade. Investors sold gold to cover losses in technology stocks when they tumbled. On Friday, the metal dropped to its lowest since mid-July.
Standard Chartered's Suki Cooper noted gold must establish a floor, as higher oil prices keep inflation risks in focus. She warned support would fade quickly if the metal fails to find technical support at $3,886 an ounce. The market currently prices in a roughly 10% chance of a rate hike this week, though bets on a hike before year-end persist due to elevated energy costs.
Spot gold edged down 0.2% to $4,007.66 an ounce in Singapore. Silver slipped 0.1% to $53.90 an ounce. Platinum and palladium were little changed.
The Bloomberg Dollar Spot Index was marginally higher.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing