Gold steady as Fed official’s remarks temper rate-hike bets

Gold held a two-day decline after a Federal Reserve official signalled one more interest-rate hike may be needed this year, but further tightening won’t be necessary in 2027, improving sentiment toward the precious metal.

Bullion traded near $4 170 an ounce, after falling 0.8% in the previous two sessions. Oil rose as a flare-up in attacks in the Middle East threatened further energy disruptions that could weigh on inflation and make a case for higher borrowing costs. Brent crude was above $106 a barrel.

ADVERTISEMENT

CONTINUE READING BELOW

Fed New York President John Williams said he sees one more interest-rate hike as appropriate this year. US Treasury yields edged lower after his remarks, supporting gold, which typically does better in a lower rate environment as it doesn’t pay interest.

US consumer price index data due later on Wednesday may provide clues on the Fed’s rate path, after it hiked for the first time since 2023 last month. Swaps traders are pricing in a low chance of a rise at this month’s policy meeting, but see a roughly 90% odds of an increase in December.

Gold’s price action of late has been muted despite large-scale selling by trend-following funds, Daniel Ghali, head of metals research at Deutsche Bank AG wrote in a note. There’s “robust physical demand for gold, with non-commercial and commercial flows working together to offset algo sales and retail now on the sidelines,” he said.

ADVERTISEMENT:

CONTINUE READING BELOW

Spot gold rose 0.1% to $4 163.82 an ounce as of 11:35 a.m. Singapore time, while silver was 0.1% higher at $59.20. Platinum was flat, while palladium advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.1% lower.

© 2026 Bloomberg

#Gold #steady #Fed #officials #remarks #temper #ratehike #bets