FX.co ★ Gold Slips on Fed Rate Hike Concerns

Gold slipped to around $4,050 an ounce on Tuesday, erasing the prior session’s gains amid persistent concerns that the Federal Reserve could raise interest rates this week. Futures markets are currently assigning better than a one‑in‑three probability to a rate hike on Wednesday—an unusually high level of uncertainty this close to a Fed meeting compared with recent years.

Citadel Securities said it expects the Fed to move ahead with an increase to reinforce Chairman Kevin Warsh’s anti‑inflation credentials, after repeated pledges from the central bank chief to restore price stability.

Gold was also pressured even after President Donald Trump said the United States was engaged in “good talks” with Iran to resolve the conflict in the Middle East, comments that pushed oil prices lower and helped ease fears over inflation and further interest rate hikes. Still, Trump warned that Washington is prepared to resume strikes against the Islamic Republic if negotiations fail.