Gold Surges Above $4,384 as Oil Prices Ease Ahead of Fed Rate Decision
Spot gold prices surged to over $4,384 per ounce on Wednesday as oil prices eased ahead of the US Federal Reserve's interest rate decision. This represents a 1.31% increase in intraday trading and a 1.29% rise in US gold futures for December delivery. Traders remain cautious about the Fed's rate decision, which could impact bullion's next move.
Interest rate traders have marginally increased the probability of a 350-375 bps target range at the upcoming US Federal Reserve meeting to 7.4% from 6.5% a day earlier, according to FedWatch data tracking expectations for changes in the Fed's policy rate.
The domestic gold futures on Wednesday also surged 1.03% to Rs 1,52,365 per 10 grams (16:05 IST) on MCX, up 1.03% over the previous close. Silver futures for December delivery surged 1.38% to Rs 2,35,322 per kilogram.
Bullion remains under pressure from escalating Middle East tensions and stronger August inflation data.