Gold gains over 1% as oil, yields slip ahead of Fed rate decision

Business Recorder reported that gold gained more than 1% on Wednesday as crude prices and American bond yields moved lower. Spot gold was 1.4% higher at $4,353.82 per ounce by 09:25 a.m. EDT, after touching its lowest level in more than a month on Monday. December-delivery U.S. gold futures climbed 1.4% to $4,395.10.

Brent crude slipped following a two-day rally, weighed down by a bigger than expected rise in US crude stockpiles. 10-year Treasury yields eased after reaching a peak not seen since 2007 in the previous session. The Federal Reserve's decision is due at 2 p.m. EDT, with Chair Kevin Warsh scheduled to hold a press conference afterwards.

Rising inflation linked to higher energy prices from the Iran conflict has prompted markets to revise rate expectations. Traders now assign 93% odds to a 25-basis-point U.S. rate increase, based on CME Group's FedWatch Tool data, a sharp reversal from the two reductions economists had broadly anticipated for this year before fighting broke out in the Middle East. Silver climbed 1.4% to $64.55 an ounce, while platinum added 0.7% to $1,788.15 and palladium rose 1.1% to $1,303.5.