Gold Prices Decline Awaiting Federal Reserve Interest Rate Decision

Gold prices declined on Tuesday, pressured by a stronger dollar, as markets closely awaited the Federal Reserve's anticipated monetary policy decision for clues on the future trajectory of interest rates. Gold futures for December delivery registered a 0.76% drop, settling at $4104.80 per ounce, while spot gold contracts fell by 0.72% to reach $4046.97 per ounce, according to trading data. The dollar maintained its month-high level, rendering dollar-denominated gold more expensive for holders of other currencies. In this context, Ilya Spivak, Global Head of Macro Strategy at financial content network TastyLive, stated that the market "is bouncing around in this tight $3950-$4200 range, and I think it's just waiting for a signal from the Fed." The U.S. Federal Reserve is set to conclude its two-day monetary policy meeting on Wednesday. The CME FedWatch Tool indicates that 62% of expectations point to unchanged interest rates, while 38% of market participants anticipate a hike of at least 25 basis points, a notable increase from the 16% recorded a week prior. Markets are also pricing in an 81% probability of an interest rate hike at the central bank's meeting in September 2026. Regarding other precious metals, silver in spot transactions decreased by 1.9% to $57.30 per ounce, platinum dropped 1% to $1605.14, and palladium fell 1.6% to $1271.09.