Gold Slips 0.16% to $4,054 as Oil Rises and Fed Decision Awaited
Spot gold fell 0.16% to $4,054.60 and silver dropped 0.40%, amid rising oil prices following an attack on the Ras Tanura refinery and anticipation of the Fed's decision.
Gold's recovery stalled in Wednesday's trading, as the spot metal was priced at $4,054.60 per ounce, down $6.36 or 0.16%, while silver fell 0.40% to $54.202 per ounce.
The decline came after oil rose following the Houthis' claim of responsibility for a missile attack on Saudi Arabia's Ras Tanura refinery, a facility with a capacity of about 550,000 barrels per day. West Texas Intermediate crude traded near $101.37 per barrel, while Brent crude approached $115.59.
Investors are monitoring the U.S. Federal Reserve meeting, where interest rates are expected to remain in the 3.75% to 4.00% range, with the market pricing in an approximately 84% probability of a rate hike in December. Traders believe rising oil prices feed inflation concerns and limit gold's gains, at a time when the Fed's stance presses on the non-yielding metal.
On the technical front, support lies at $4,039 and $4,015, while resistance stands at $4,059 and $4,079, according to the report. Focus remains on whether Fed officials will signal another hike in December, which could determine gold's direction in upcoming sessions.
What do these terms mean?
Spot Gold: The price to purchase and immediately deliver the metal in the market, serving as a global benchmark for gold prices.
Technical Support Level: A price level where the metal finds buyers preventing further decline, causing it to stall or rebound upward.
Technical Resistance Level: A price level where the metal faces sellers hindering its rise, and breaking above it may open the door for additional gains.
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