Ammon News - Gold prices ticked lower on Wednesday after the previous session's climb ‌of about 1%, as higher oil prices stoked inflation fears while investors awaited the Federal Reserve's policy decision later in the day for clues to the rate outlook.

Spot gold was ​down 0.7% at $4,030.20 per ounce by 0602 GMT. US gold futures for December ​delivery dropped 0.8% to $4,043.0.

"Gold is moving based on the interest rate expectations ⁠and inflation risks because of higher energy prices," said Soni Kumari, an analyst ​at ANZ.

"As a result, the Fed will remain cautious, which remains a short-term key headwind for gold."

Oil ​prices climbed more than 1% on Wednesday after an attack on a refinery in Saudi Arabia renewed concerns around supply risks from the major exporter.

Elevated energy prices raise expectations that the Fed will keep interest rates ​higher for longer, increasing the opportunity cost of holding non-yielding bullion.

Markets await ​the Fed's policy decision due at 1800 GMT, along with the Personal Consumption Expenditures data on ‌Thursday, ⁠a key gauge closely watched by the central bank as it targets a 2% inflation rate.

Traders largely expect the Fed to leave rates unchanged today but are pricing in a chance of about 84% for a December rate hike, according to the CME's FedWatch Tool.

High ​inflation will persist ​in the global ⁠economy well into next year, according to hundreds of economists polled by Reuters.

Meanwhile, analysts cut their 2026 gold price forecast for ​a second straight quarter due to high Treasury yields, a strong US dollar and ​expectations that ⁠rates will stay higher for longer, but still expect a recovery in 2027, a Reuters survey showed.

Additionally, analysts and traders cut their platinum and palladium price forecasts for ⁠2026 for ​a third straight quarter, a Reuters survey showed.

Among other ​metals, spot silver slid 1% to $53.82 per ounce, platinum lost 0.9% to $1,526.74 and palladium steadied at $1,025.63.


Reuters