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Gold Holds Near $4,170 As Fed Rate Hike Bets Cool
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CNBC TV18•17-10-2026, 14:52
Gold Holds Near $4,170 As Fed Rate Hike Bets Cool
- •Gold prices traded steadily near $4,170 an ounce as easing expectations for an immediate Federal Reserve rate hike offset pressure from high oil prices and rising US Treasury yields.
- •Market sentiment shifted after Federal Reserve Chair Kevin Warsh spoke in Bangkok, leading traders to trim the probability of a near-term rate increase.
- •Bullion has faced sustained headwinds this year as global central banks raised borrowing costs to fight inflation, with prices down roughly 20% since late February.
- •Spot gold finished slightly lower at $4,168.49 an ounce in New York, while other precious metals experienced mixed results with platinum posting a modest gain.
Key Questions Answered
Gold prices stayed steady as easing market expectations for an immediate Federal Reserve interest rate hike counteracted upward pressure from surging crude oil prices and higher US Treasury yields.
Following Federal Reserve Chair Kevin Warsh's speech in Bangkok, where he declined to signal an aggressive tightening stance, interest-rate traders reduced the probability of a quarter-point rate increase from a one-in-three chance to roughly 15%.
Bullion prices have declined by approximately 20% since late February, when the outbreak of conflict involving the US, Israel, and Iran disrupted global energy flows and stoked the inflationary pressures that prompted central banks to tighten monetary policy.
