Gold eases to $4,327 as investors await Fed signals

Spot gold slipped 1.16 per cent to $4,326.98 an ounce on Tuesday, according to data reported by Mettis Global, with prices showing little clear direction. Bullion has been weighed down by the view that borrowing costs in the United States will stay high for a long time. Traders are now waiting for fresh guidance from Federal Reserve officials on the policy path ahead.

According to CNCB, Chris Weston, head of research at Pepperstone, said comments from Fed officials and crude oil moves will be the main focus this week. Markets are looking for clues on whether the central bank may lean toward another rate increase in October. Weston cautioned that a crude rebound strong enough to lift inflation expectations could keep gold under pressure, even though oil has already eased from recent peaks. Last week the Fed raised its benchmark rate by 25 basis points, and the central bank signalled that further increases could arrive in the months ahead.

Geopolitical developments also featured in the update, with Houthi forces advancing in Yemen and oil prices steadying after a multi-day slide. Silver, platinum and palladium also moved higher, with spot silver at $66.19, platinum at $1,792.76 and palladium at $1,305.10, each up 0.3 per cent.