Gold steadies around $4,288 amid Fed rate wait

Gold prices were largely flat on Tuesday, according to Mettis Global, steadying after Monday's slide to a low not seen in more than a month. Spot gold was down 1.39 per cent at $4,287.76 an ounce as of 11:28 am PST. Attention has shifted to the US Federal Reserve, which will announce its policy decision at 1800 GMT on Wednesday.

Traders are largely betting on a 25-basis-point reduction, taking the benchmark to between 3.75 and 4 per cent, CNBC reported. Bullion is typically bought as a hedge against inflation and geopolitical stress, yet it tends to lose appeal when borrowing costs climb because holding a non-yielding asset becomes more expensive. Data released on Friday showed US consumer prices rose faster in August, while core inflation recorded its biggest jump in four months.

Elsewhere, Iran-backed Houthi militants in Yemen launched fresh strikes against Saudi Arabia, pushing oil prices higher on concern about crude supply. Yields on 10-year US Treasury notes moved above 5 per cent on Monday for the first time since October 2023. Silver rose 0.1 per cent to $63.28, platinum eased 0.1 per cent to $1,757.46 and palladium fell 0.7 per cent to $1,283.61.