Fed Decision Looms as Gold Prices Rebound

Gold prices rebounded on Wednesday after two sessions of losses as investors positioned for a crucial Federal Reserve monetary policy decision later in the day.

The metal had fallen more than 3% in September, with downward pressure largely coming from high energy prices and rising borrowing costs.

A two-day rally in oil prices paused due to an unexpectedly large build in U.S. crude inventories, although uncertainty over the duration of Saudi Arabia’s east-west pipeline shutdown has kept crude elevated.

Markets are now pricing a 92% probability that the Fed will roll out its first rate hike since 2023, as policymakers move to quell mounting inflationary pressures.