CNBC _ Gold prices declined on Thursday as investors awaited the US Federal Reserve meeting next week looking for cues on the trajectory of interest rates.
Spot transactions fell 1.19% to $4,091.13 per ounce
The precious metal fell 1.19% in spot transactions to $4,091.13 per ounce.
Futures contracts drop 1.04% to $4,106.90 per ounce
US gold futures for December delivery also fell 1.04% to $4,106.90.
Almost all economists surveyed by Reuters expected the US central bank not to raise interest rates this month, as monetary policymakers maintain a cautious approach despite persistent inflation at elevated levels that calls for stricter measures
The markets are anticipating the US Federal Reserve's monetary policy meeting on October 27 and 28, alongside personal consumption expenditures data scheduled for release next week. This data is a key indicator closely monitored by the central bank, which aims to bring the inflation rate down to 2%
Traders' expectations for a US rate hike in October do not exceed 16%
According to the CME Group's FedWatch tool, traders' expectations for a rate hike next week do not exceed 16%, while the probability of a hike in December reaches 90%
Higher interest rates typically weigh negatively on gold prices, as they increase the opportunity cost of holding non-yielding bullion.
