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Gold Bounces From 10-Month Low Before Fed Reserve Rate Decision

  • U.S. seen boosting interest rates for the first time this year
  • Metal is worst commodity performer after sugar this quarter
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Why Fed Rate Hike Is a Near Certainty

Updated on

Gold bounced from its lowest close in 10 months as traders hedge against any potential surprise from the U.S. Federal Reserve’s meeting where policy makers are expected to increase interest rates for the first time this year.

Over the past month, the metal has tumbled as traders price in the odds of a rate hike, reducing the appeal of assets that don’t pay yields or dividend. Donald Trump’s election to the U.S. presidency also helped spur the sell-off as his transition team plans infrastructure spending of as much as $1 trillion, bolstering the growth outlook and spurring the rally in U.S. equities to records.