Gold slips on oil-fuelled inflation fears ahead of Fed meeting

Gold edged down on Wednesday as rising oil prices revived inflation concerns, with markets waiting for the US Federal Reserve’s decision later in the day. Business Recorder reported spot bullion at $4,045.29 an ounce, down 0.3% by 0347 GMT, while December US futures fell 0.4% to $4,059.00. The decline followed a gain of about 1% in the previous session.

Higher energy costs have raised expectations that US interest rates could remain elevated for longer, making non-yielding gold less attractive. Traders mostly anticipate no rate change at this meeting, but markets are pricing an 84% likelihood of a December increase; investors are also watching Thursday’s Personal Consumption Expenditures data. A Reuters survey found analysts lowered their 2026 gold forecast for a second consecutive quarter, citing Treasury yields, the dollar and interest-rate expectations, while still anticipating a recovery in 2027.