Gold Rallies Ahead of Fed Decision

Gold prices rebounded during Wednesday's trading (Sept. 16) after posting declines in two consecutive sessions. Gold moved closer to the US$4,350-per-ounce level as investors positioned themselves ahead of the Federal Reserve's monetary policy decision scheduled for later that day.

At 02:31 ET (06:31 GMT), spot gold (XAU/USD) rose 0.8% to US$4,326.44 per ounce, while gold futures also climbed 0.8% to US$4,366.50 per ounce.

Market attention is now focused on the Fed's interest rate decision. Market participants estimate a roughly 92% probability that the US central bank will raise interest rates, making the Fed's decision and policy signals a primary focus for investors.

These expectations arise amidst persistent inflation risks. High oil prices and elevated US Treasury yields remain key factors monitored by the market, as they may indicate that inflationary pressure continues to pose a challenge to the US economy.

Other precious metals also gained ground. Silver (XAG/USD) rose 1.4% to US$64.59 per ounce, while platinum (XPT/USD) climbed 0.7% to US$1,792.43 per ounce. Meanwhile, the US Dollar Index remained relatively stable at 99.57 ahead of the Fed's policy decision.