Gold prices remained steady, trading around $4,290 an ounce, despite a two-day decline, as elevated oil prices continued to contribute to inflation concerns. This situation has led market participants to anticipate an interest-rate hike from the Federal Reserve, which is scheduled to announce its policy decision later on Wednesday.
Traders are currently pricing in a 92% chance that the Federal Reserve will raise interest rates. Higher borrowing costs are typically viewed negatively for gold, as the precious metal does not offer interest payments. This dynamic often makes interest-bearing assets more attractive in a rising rate environment.
The steady price action for gold follows earlier reports of hotter-than-expected US inflation data, which had previously put pressure on gold prices. Gold had fallen over 1% the previous session to a five-week low, and was trading near $4,340 an ounce after falling for a third week following August's core consumer price index data. However, as of September 16, 2026, gold has found some stability below the $4,300 mark.
