Gold’s return above $4,000 puts its rebound ahead of Wednesday’s Federal Reserve decision; the FOMC’s September minutes said inflation remained elevated, and rates can shape bullion demand.
Reuters reported spot bullion at $4,009.87 per ounce, up 0.4%, at 11:42 p.m. EDT Sunday (03:42 UTC Monday). An earlier Reuters snapshot, at 8:37 p.m. EDT Sunday (00:37 UTC Monday), showed $3,987.45, down 0.2%. The readings are separate checks, with the metal moving from below to above $4,000 in the intervening hours.
Reuters put Friday’s low at $3,975.23, saying it was the first time gold had fallen beneath $4,000 since mid-July. The agency said bullion lost about 4% over the week, its largest weekly decline since June. EconoTimes had previously tracked gold near $3,995 ahead of this week’s Fed meeting.
The explanations for Monday’s move diverged. FXStreet pointed to a weaker U.S. dollar and lower Treasury yields; Reuters linked the rebound to easing oil prices and reduced inflation concerns. Kyle Rodda, senior financial market analyst at Capital.com, told Reuters that lower oil prices had provided relief.
That policy focus matters to bullion because it pays no interest; Reuters said higher rates can make gold less competitive with assets that generate yield. At their Sept. 15-16 meeting, the Federal Open Market Committee (FOMC) raised the federal funds target range by 25 basis points to 3.75%-4%, effective Sept. 17. The minutes said inflation remained elevated.
The FOMC’s next two-day meeting is scheduled for Oct. 27-28. The Federal Reserve’s calendar lists the decision for Wednesday at 2 p.m. EDT, with a news conference at 2:30 p.m. EDT. The U.S. Bureau of Economic Analysis (BEA) is due to publish its advance estimate of third-quarter gross domestic product and September Personal Income and Outlays report Thursday, Oct. 29, at 8:30 a.m. EDT.
