Gold fell 0.5% in Tuesday trading, and Reuters reported higher oil prices as investors weighed the U.S. interest-rate outlook before the Fed’s next decision, scheduled for Oct. 28.
Reuters recorded spot gold at $4,120.49 per ounce at 5:09 a.m. ET (09:09 UTC). An earlier Reuters snapshot at 11:47 p.m. ET Monday (03:47 UTC Tuesday) put it at $4,145.22, up 0.1%. The prices describe separate points in the trading session.
Treasury data show the 10-year Treasury par yield at 5.15% on Oct. 19, up from 5.09% on Oct. 16, a six-basis-point rise. Investors may find interest-bearing bonds more appealing when yields rise, while bullion generates no interest.
Reuters also reported that oil prices rose Tuesday. Minutes from the Federal Open Market Committee’s Sept. 15-16 meeting cited oil-price movements as a major contributor to higher near-term inflation compensation since its previous meeting. The minutes discussed longer-term inflation expectations separately.
On Sept. 16, the Fed raised its target interest rate range by a quarter-point to 3.75% to 4%. Its next meeting is scheduled for Oct. 27-28, with a decision at 2 p.m. ET Oct. 28. The U.S. Bureau of Economic Analysis is due to release September personal income and outlays data, including inflation measures, at 8:30 a.m. ET Oct. 29.
