Gold Futures Rise in New York as Bond Yields Fall Ahead of Fed Meeting

Key summary

New York gold futures closed higher on Wednesday (October 21) after a decline in US Treasury yields supported prices following two consecutive days of losses. COMEX December delivery contracts gained $7.40, or 0.18%, settling at $4,150.00 per ounce. The 10-year US Treasury yield dropped to 5.104% on Wednesday, reducing the opportunity cost of holding non-yielding gold assets. Investors are watching the Federal Reserve's monetary policy meeting scheduled for October 27-28 and upcoming Personal Consumption Expenditures (PCE) inflation data. According to CME Group's FedWatch Tool, investors assign an 85.1% probability that the Fed will keep rates at 3.75-4.00% in the October meeting and an 87.4% probability of a 0.25% rate hike to the 4.00-4.25% range in the December meeting. The report is attributed to Rattana Phongtawich.