Gold prices were little changed around $4,180 an ounce on Tuesday, as oil prices stalled after a three-session rally and the US dollar weakened. At the same time, expectations for a Federal Reserve interest rate hike this month remained muted ahead of a heavy slate of US economic data.
Investors are focused on Wednesday’s release of the September US Consumer Price Index, followed on Thursday by the Producer Price Index and retail sales figures. Markets will also closely monitor Fed Chair Kevin Warsh’s remarks at the IMF–World Bank annual meetings on Friday for further insight into the central bank’s policy trajectory.
According to the CME FedWatch tool, futures markets are assigning less than a 20% probability to a rate hike at this month’s Fed meeting, while the implied likelihood of a move in December is above 85%. Meanwhile, Cleveland Fed President Beth Hammack said the central bank should move “relatively quickly” toward a more restrictive policy stance to bring inflation under control.
