Consolidating Ahead Of The FOMC Decision

Gold is showing minimal movement in the Asia-Pacific session, maintaining its position after a marginal 0.1% decline to $1979.54 on Tuesday.

• Yesterday's market activity is best characterised as a consolidation following Monday's notable slide, setting the stage for the upcoming FOMC decision at 1300 ET and Fed Chair Powell's press conference at 1430 ET.
• The Fed will likely lower its median "dot plot" estimate for policy interest rates at the end of 2024 to around 4.9%, former officials and staffers told MNI, as expectations build for the first rate cut to come as early as the year's first half.
• US Treasuries finished slightly richer following an in-line US CPI print on Tuesday.
• Bullion has experienced a wide ride in the latter part of this year, witnessing a dip in September followed by a surge to a record earlier this month. The metal's trajectory has been significantly influenced by trader speculation on future US monetary policy, with lower rates typically positive for gold.