Can gold hold the $4,000 line until the US Federal Reserve speaks? On Tuesday morning, 27 October, spot gold changed hands at about $4,003.60 an ounce, down 0.3%. It had dropped to $3,975 on Friday 23 October and closed last week roughly 4% lower, its biggest weekly loss since June. Since Monday the metal has stayed in a tight band of about $3,976 to $4,020.
What are traders expecting from the Fed? Its policy meeting runs on 27 and 28 October, with the decision due on Wednesday at 18:00 GMT (21:00 Makkah time) and a press conference by Chair Kevin Warsh half an hour later. Market pricing reported by Reuters gives only about an 11% chance of a rate rise this week from the current 3.75% to 4% range, but about 82% for a rise in December. Because gold pays no interest, higher rates usually make it less attractive to hold.
What does a gram cost in the Kingdom? Morning updates published by Al Ain News put 24-karat gold at about SAR 483 a gram, 21-karat at about SAR 423 and 18-karat at about SAR 362. These are guide prices before any workmanship charge.
