Fed Rate Decision Sparks Uncertainty Over Gold Price

The Federal Reserve's monetary policy week has begun, and its decisions will have a significant impact on the price of Gold. At the start of the week, Gold was trading at around $4,330.

Last week's hot inflation readings from the US Producer Price Index (PPI) and Consumer Price Index (CPI) reports for August boosted expectations that the Fed will raise interest rates at its policy meeting on Wednesday.

The odds of a rate hike have increased to 86.5% according to the CME FedWatch tool, up from 59.5% before the release of the inflation data.