Gold, silver end lower as markets brace for likely Fed hike
AI Market Summary
Gold and silver settled lower as markets price a high probability of a 25bp Fed hike, with a firmer USD and 10-year yields near 5% pressuring non-yielding metals. Elevated oil adds inflation uncertainty, shifting focus from the largely discounted hike to forward guidance. A more hawkish stance would reinforce real-yield headwinds; a narrower, "insurance" framing could temper tightening expectations.
Impact level
● Medium
Affected assets
NCCOGOLD2USD/USDT-0.10%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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Gold and silver prices settled lower in late U.S. trading Tuesday as a stronger dollar, firm crude oil prices and the 10-year Treasury yield hovering near 5% weighed on non-yielding metals ahead of Wednesday's Federal Reserve decision.
Front-month Comex gold closed at $4,291.60 an ounce, down 0.43%. Front-month silver settled at $63.236 an ounce, down 0.4%.
Futures markets are assigning about a 90% chance of a 25-basis-point rate increase. With the move largely priced in, traders are focused on the Fed's guidance. If Chair Kevin Warsh points to a broader tightening cycle, gold could face renewed pressure from higher real yields. If the hike is framed as insurance against oil-driven inflation, bullion may find support as terminal-rate fears ease.
Full story at Kitco.
