Gold Price Today, October 28: Yellow metal trades flat near $4,050 ahead of Fed rate decision; silver slips – Markets

Gold Price Today: Gold prices traded nearly flat on Wednesday, October 28, after rising for two consecutive sessions, as investors awaited the Federal Reserve’s policy decision due later in the day. The decision could provide insights into the yellow metal’s future trajectory.

As of 6:40 am, spot gold was down 0.1 per cent at USD 4,057.52 per oz. Spot silver edged lower by 0.2 per cent to trade at USD 54.2.

On the domestic market, gold and silver prices were not available at the time of writing this report. Gold and silver futures on the Multi-Commodity Exchange (MCX) had settled at Rs 144100 per 10g and Rs 196511 per kg, respectively.

Gold Price Today: Fed decision in focus

Investors are awaiting the Federal Reserve’s policy decision due later on Wednesday, which remains one of the key factors to watch for bullion prices.

According to CME’s FedWatch Tool, there is less than a 10 per cent probability of an interest rate hike during the FOMC meeting, while the probability of interest rates remaining unchanged stood at 90 per cent.

Lower expectations of interest rate hikes support gold by reducing the opportunity cost of holding the non-yielding metal and often weakening the US dollar.

Attention will also be on inflation data due on Thursday, which may provide additional insights into the condition of the world’s largest economy.

Last 10 Days Price of Gold

US dollar movement weighs on gold

The yellow metal edged lower as the US dollar continued to trade above 102 against a basket of six major currencies, making bullion less attractive for foreign investors.

A stronger US dollar makes gold more expensive for holders of other currencies, potentially reducing demand and putting downward pressure on bullion prices.

Gold prices: Rising energy costs and inflation concerns

Despite expectations of a Federal Reserve rate cut later in the day, inflation concerns remained high amid elevated energy prices.

Brent crude was trading above USD 110, while WTI was above USD 101.

Rising energy prices can fuel inflation by increasing transportation, manufacturing and input costs across the economy. This can be negative for gold if it leads to expectations of higher interest rates.

However, if investors view inflation risks as outweighing growth concerns, gold can benefit as an inflation hedge.

US-Iran conflict in focus

Developments surrounding the US-Iran conflict will also remain among the key factors to watch for bullion prices. Market participants will continue to monitor these developments alongside the Federal Reserve’s policy decision and the upcoming inflation data.