Gold price fluctuates lower as the market focuses on the Federal Reserve meeting and PCE inflation data

1. In early Asian trading on Thursday, gold prices edged down slightly, with spot gold once falling 0.8% to $4,107.43 per ounce. Investors are focusing on next week’s Federal Reserve policy meeting to look for clues about the future path of interest rates. 2. U.S. officials said on Wednesday that the State Department is preparing to order the evacuation of some staff and their families from several U.S. embassies in the Gulf region. The market is concerned that the Middle East situation may escalate, which would keep oil prices and inflation at high levels, supporting expectations for further Federal Reserve rate hikes this year and putting pressure on gold prices. 3. A survey shows that almost all economists interviewed expect the Federal Reserve to pause rate hikes this month and raise interest rates again in December. Although stubborn inflation may require a tougher response, policymakers have recently signaled a patient approach. 4. The market is focused on the Federal Reserve policy meeting on October 27-28 and next week’s release of the Personal Consumption Expenditures (PCE) Price Index, a key inflation indicator closely watched by the Federal Reserve. The CME FedWatch tool shows that the market expects only a 16% chance of a rate hike by the Federal Reserve next week, but the probability of a hike in December is as high as 90%.