Gold Prices Slip on Rate Outlook
Gold prices slipped on Wednesday as investors weighed the prospect of major central banks keeping interest rates elevated for longer to combat inflation. Spot gold fell 0.2% to $4,345.99 per ounce, while US gold futures for December delivery were up 0.2% at $4,382.70.
The dollar steadied near its strongest level in two months, making greenback-priced bullion more expensive for overseas buyers. Kyle Rodda, senior financial market analyst at Capital.com, noted that short-term volatility in gold depends on oil trades and Middle Eastern developments, but long-term structural drivers remain strong.
Gold's appeal tends to wane when elevated rates boost returns on interest-bearing investments. The Fed recently raised its benchmark rate by 25 basis points to 3.75%-4.00% and signaled another increase could come before year-end. Analysts at BMI maintained their 2026 gold price forecast at an average of $4,400 per ounce, citing elevated geopolitical risks and continued central bank purchases.