Gold holds steady as investors await Fed policy cues

Business Recorder reported that bullion stayed roughly flat on Tuesday, after Monday's slide took it to its weakest level in more than a month. At 0157 GMT, the spot price stood at $4,300.96 an ounce, showing little movement. Traders are waiting for the US Federal Reserve's policy decision, due at 1800 GMT on Wednesday at the end of a two-day meeting.

Markets are largely expecting the Fed to raise its benchmark by a quarter-point, taking it to a 3.75% to 4.00% range. According to IG analyst Tony Sycamore, the tone Fed Chair Kevin Warsh adopts about further hikes could carry more weight for gold and risk assets than the move itself. Because bullion pays no yield, higher rates tend to make it less attractive, even though it is often seen as a hedge against inflation and geopolitical risk.

Friday's data showed a pickup in US consumer price growth for August, and US 10-year Treasury yields touched 5% on Monday, a level not reached since October 2023. Oil rose as worries over supply disruptions grew, following fresh Houthi attacks on Saudi Arabia. Silver rose 0.1% to $63.28, while platinum slipped 0.1% and palladium dropped 0.7%.