Gold steady as dollar strength limits demand

October 27, 2026 (MLN): Gold prices were steady on Tuesday as a firmer US dollar dented demand, with investors waiting for the Federal Reserve’s policy decision for clues on the interest rate path.

Currently, spot gold is up 0.33% to $4,007.96 an ounce as of [10:21 am] PST, according to data reported by Mettis Global.

The dollar stayed close to a one-week high, making dollar-priced bullion more expensive for buyers holding other currencies.

Gold had fallen below the $4,000 level last week for the first time since mid-July and lost 4 % over the week, its steepest weekly drop in about four months, as higher energy prices stoked inflation worries and strengthened expectations of US rate hikes, according to CNBC.

Fed policymakers have signalled they will leave borrowing costs unchanged at this week’s meeting, but persistent inflation concerns have left investors doubtful that the pause will last.

The Fed’s decision is due on Wednesday, followed by Personal Consumption Expenditures (PCE) data on Thursday, the central bank’s preferred inflation gauge as it targets 2 % inflation.

According to the CME FedWatch Tool, traders see about an 11 % chance of a hike this week and an 82 % chance of an increase in December.

On the geopolitical front, the Saudi-led coalition in Yemen said on Tuesday it had intercepted and destroyed three ballistic missiles and drones fired by the Houthis towards two regions of Saudi Arabia.

Among other precious metals, spot silver slid 0.7 % to $53.53 per ounce, platinum lost 0.8 % to $1,514.16, and palladium dropped 1.5 % to $1,034.75.

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