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Gold dips as markets await Fed decision
Traders remain cautious ahead of the Federal Reserve policy decision, with limited movement across assets
Gold prices faced selling pressure after an uptick to $2,652
Silver prices continue to consolidate for the fifth day
WTI crude dropped to $69.70 amid concerns over weak Chinese demand
Currencies
The foreign exchange market remains relatively steady, with limited movement across most major pairs. However, the Australian and New Zealand dollars stand out with notable declines, both hitting fresh yearly lows.
- AUD/USD slipped to 0.6311, breaking below August's low.
- NZD/USD fell to 0.5735, its weakest level since November 2022
These moves precede the much-anticipated Federal Reserve policy decision later today, adding a layer of intrigue to an otherwise subdued trading session.
Broader markets are adopting a cautious stance ahead of the Federal Open Market Committee (FOMC) meeting outcome.
Precious Metals
- Gold (XAU/USD) saw renewed selling pressure following an uptick to $2,652 during the Asian session. Although the metal is off its one-week low touched yesterday, expectations of persistently high US Treasury yields continue to weigh on the non-yielding asset.
- Traders remain hesitant to take aggressive positions before the FOMC decision. Additionally, geopolitical tensions and trade uncertainties could lend support to the safe-haven asset in the near term.
- Silver (XAG/USD) is consolidating for a fifth consecutive day, trading near $30.50 per troy ounce.
Crude Oil
- WTI Crude Oil is trading near $69.70, edging lower amid renewed concerns about demand in China, the world's largest oil importer.
- Disappointing Chinese retail sales data has amplified fears of sluggish consumer spending, undermining hopes of a breakout from the recent two-month price range.
Traders are treading cautiously, with the Fed’s tone likely to define market sentiment heading into the year-end.
