Gold hovered around $4,150 an ounce on Wednesday, consolidating after two straight sessions of losses, as investors awaited US consumer inflation data for clearer signals on the Federal Reserve’s next policy move. Futures markets currently imply about a 77% probability that the Fed will keep interest rates unchanged this month, and an 88% chance of a rate hike in December.
New York Fed President John Williams signaled that one additional rate increase may still be appropriate this year, though he suggested that further monetary tightening is unlikely to be needed in 2027.
Geopolitical risks also remained in focus. Oil prices extended their gains amid intensifying hostilities between Saudi Arabia and Iran-backed Houthi rebels, heightening concerns over potential supply disruptions in the Middle East.
Separately, the IMF warned that global growth and financial stability face significant risks from a possible end to the current AI investment boom, rising debt burdens, and a prolonged conflict in the Middle East.
