Business · Markets · 1 hr ago
Gold Wavers as Traders Weigh Fed Rates and US-Iran Talks
Gold swung between gains and losses as investors weighed US interest rates and talks to end the war between the United States and Iran.
A diplomat involved in the negotiations said reports that an agreement was close were inaccurate, though talks continue.
Higher energy prices are keeping inflation concerns alive, which could lead the Federal Reserve to raise rates again later this year.
Higher rates can weigh on gold because the metal does not pay interest.
The Fed raised rates in September for the first time since 2023, and traders see a 15% chance of another increase at its October 27-28 meeting.
Fed Chair Kevin Warsh has not signaled a decision, while most Fed officials have projected at least one more increase this year.
Investors are watching to see whether the Fed pauses this month before possibly tightening policy again later in the year.
Gold fluctuated as traders weighed the Federal Reserve’s rate path and negotiations to end the US-Iran war.
Bullion moved between a 0.4% gain and a 0.7% loss.
A diplomat involved in the negotiations said reports that an agreement was close were inaccurate.
Elevated energy prices sustained inflation concerns and could keep the Fed on track to raise rates again later this year.
Spot gold fell 0.4% to $4,123.97 at 12:32 p.m. in London.
- Who
- Gold traders and investors, as well as the Federal Reserve and negotiators in the US-Iran talks.
- What
- Gold fluctuated as markets assessed interest-rate expectations and the status of negotiations to end the war.
- When
- October 20, 2026. The Fed’s next meeting was scheduled for October 27-28.
- Where
- Gold prices were reported in London. The negotiations concern the US-Iran war.
- Why
- Traders weighed the possibility of further Fed rate increases and uncertainty over whether the talks would produce an agreement.
Reports of an imminent breakthrough
Diplomat involved in negotiations
Status of the talks
Reports of an imminent breakthrough
An unconfirmed report said a breakthrough could come as soon as that week.
Diplomat involved in negotiations
The diplomat said reports that an agreement was close were inaccurate.
The Fed increased rates for the first time since 2023.
Comments by Fed Chairman Kevin Warsh were interpreted as reinforcing expectations for a pause.
Gold fluctuated as traders assessed the Fed’s rate path and US-Iran negotiations.
The Fed was scheduled to hold its next meeting.
- Spot gold
- Fell 0.4% to $4,123.97 at 12:32 p.m. in London
- Gold’s trading range
- Swung between a 0.4% gain and a 0.7% loss
- Next Fed meeting
- October 27-28
- Chance of another quarter-point increase
- 15% priced in by traders
- Fed inflation target
- 2%
2 sources
What people are saying
prejudge