Gold prices inched higher on Tuesday, at one point returning to the 4,220 USD/ounce area, as the market stayed defensive ahead of the U.S. Federal Reserve’s interest rate decision. This is seen as one of the most important meetings of the fourth quarter, potentially shaping market risk appetite for the remainder of the year.
During its most recent rally, gold hit a peak of $4,264.39 on Monday but quickly closed lower at $4,231, showing strong selling pressure despite the metal’s impressive upward momentum last week driven by expectations of potential Fed rate cuts.
In recent sessions, the market has significantly increased its expectations for Fed easing, especially after several Fed officials publicly expressed support for cutting rates next month. According to the CME FedWatch Tool, the probability of a 25-basis-point rate cut at the December 9–10 meeting has risen to 77.2%, up sharply from 41.8% just a week earlier.
Gold prices edged higher on Tuesday, supported by expectations that the U.S. Federal Reserve (Fed) will continue its monetary easing policy and by lingering trade uncertainties — even as risk appetite improved with the U.S. government set to end its longest shutdown in history.
Gold slumped on Tuesday as the U.S. dollar climbed to a three-month high, with traders awaiting upcoming U.S. economic data for clues on the Federal Reserve’s policy path. Spot gold briefly fell to as low as $3,929/oz. By Wednesday, however, the metal rebounded sharply to $3,970/oz (08:00 GMT) as investors bought the dip after the steep decline.
Gold is currently trading around $4,000 per ounce, as investors await a series of key U.S. economic data releases and signals from the Federal Reserve regarding its rate-cutting roadmap. Meanwhile, policy changes in major economies and the ongoing U.S. government shutdown have delayed several crucial reports, adding further uncertainty to the precious-metal market.
Continuing its recovery momentum from late October, oil prices extended gains in early-week trading after the OPEC+ alliance unexpectedly paused its plan to increase production in Q1/2026. The move helped ease oversupply concerns and reinforced investor optimism.
During the first two days of the week, gold faced heavy selling pressure, dropping by nearly $100 per day on average, with spot prices at one point falling below $3,900 per ounce. By Wednesday (October 29), however, gold rebounded toward the $4,000 mark as markets awaited the outcome of the U.S. Federal Reserve’s (Fed) policy meeting.
At the opening of the Asian session on Monday (October 27, 2025), gold prices extended their decline, continuing last week’s downtrend as U.S.–China trade tensions eased. The improving geopolitical outlook weakened safe-haven demand, while risk appetite returned to equity markets. Investors are now turning their focus to major central bank meetings this week, seeking clearer signals on the pace of rate cuts.
After a fairly positive rebound on Thursday, gold turned slightly lower during the Asian trading session on Friday. With the current price action, the precious metal is heading toward its first weekly decline after nine consecutive weeks of gains, as investors take profits at record-high levels and await key U.S. inflation data to be released later today.