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Gold Steadies as Investors Await Another Big Fed Rate Increase

  • Bullion heads for monthly loss as central banks tighten policy
  • Traders are pricing in a 75 basis-point hike at Fed meeting
Updated on

Gold steadied as investors count down to the conclusion of a key Federal Reserve meeting where a large interest-rate hike is expected.

Bullion was little changed after slipping 0.5% on Monday. Traders are pricing in a 75 basis-point increase at the Fed’s two-day meeting, which wraps up Wednesday, although the outlook after that is harder to forecast. Market participants have underpriced the amount of tightening needed to tame inflation, the Fed’s current priority, according to Bloomberg Economics, which expects a steeper and higher path for the fed funds rate.