Gold Declines Globally Ahead of Fed's Crucial Decision

Gold prices fell on Tuesday, fueled by heightened inflation concerns stemming from rising crude oil prices. This reinforced expectations that the U.S. Federal Reserve would raise interest rates tomorrow. By 11:05 Moscow time, December gold futures dropped 1% to $4308.50 per ounce. Spot prices for the metal also decreased by 0.70%, reaching $4269.70 per ounce, according to trading data. The U.S. Federal Reserve is slated to announce its monetary policy decision tomorrow, Wednesday, at 18:00 GMT, concluding a two-day meeting. Financial markets strongly anticipate that Fed policymakers will implement a quarter-point rate hike, placing the range between 3.75% and 4%. While gold is traditionally viewed as a safe haven against inflation and geopolitical risks, it often loses its appeal when interest rates climb. Such increases raise the opportunity cost of holding the yellow metal, which provides no yield. This dynamic follows data released last Friday, showing an accelerated pace of U.S. consumer price increases in August 2026. A key core inflation index also registered its largest monthly rise in four months.