Gold Prices Slip as Rate Hike Odds Hit 92%

Gold prices have been trading weakly around $4,280 per ounce in anticipation of the Federal Reserve's interest rate decision. The market is pricing a 92% probability of a 25 basis point hike at this meeting.

The U.S. Treasury yield surged to its highest level since 2007, reaching 5.04%, contributing to concerns that the Fed may keep monetary policy tighter for longer.

Christopher Wong, a strategist at OCBC, notes that while the hike itself is highly likely, the key uncertainty lies in the path forward and whether the Fed leaves the door open for additional tightening.