The Fed is widely expected to keep interest rates unchanged, but the central bank’s statement after its policy meeting will be closely parsed for signals on whether to accept another rate hike this year. Inflation has climbed since the start of the Iran war earlier this year. But investors will also get the latest inflation data Wednesday morning with the release of the personal consumption expenditures price index, the Fed’s favorite inflation measure.
December gold rose 0.9% Tuesday to settle at $4,074.60 an ounce on Comex and the front-month contract gained 1.7% in the first two days of the week. Bullion is down 2.7% this month after dropping 6.6% last month and rising 9.1% in August. It’s down 6.1% so far this year after rallying 64% in 2025. The December contract is currently down $13.10 (-0.32%) an ounce to $4061.50 and the spot price is $4049.80.
In a Reuters survey, analysts cut their 2026 gold price forecast for a second straight quarter on expectations of persistently high Treasury yields, a strong U.S. dollar, and speculation that interest rates will stay high for longer.
More than 90% of the investors tracked by the CME FedWatch Tool are betting that the Fed will keep interest rates unchanged at 3.75% to 4.00%, with the rest anticipating a 25 basis point rate increase. More than 84% of investors anticipate rates will be higher after the December meeting.
After Wednesday’s, there is only one scheduled policy meeting left this year, in December. If the Fed raises rates, it’s considered bearish for gold, making the yellow metal a less attractive asset for investment. The Fed raised its benchmark rate by 25 basis points last month. It had previously kept rates unchanged this year after three previous rate cuts.
December silver futures added 0.3% Tuesday to settle at $54.51 an ounce on Comex, and the front-month contract advanced 1.1% so far this week. The most-active contract touched a record above $115 in January. Silver is down 10% this month after tumbling 9.6% in September and climbing 16% in August. It is down 23% so far this year after rising 141% in 2025. The December contract is currently down $0.608 (-1.12%) an ounce to $53.905 and the spot price is $53.85.
Spot palladium lost 1.9% Tuesday to $1,039.50 an ounce and is down 1.2% so far this week. Palladium is down 14% this month after losing 11% in September and rallying 5.7% in August. It’s down 36% in 2026 after rising 74% last year. Currently, the spot price is down $12.50 an ounce to $1025.00.
Spot platinum fell 0.4% Tuesday to $1,538.40 an ounce and has dropped 1.4% so far this week. Platinum is down 9.8% this month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 24% so far this year after increasing 122% in 2025. The spot price is currently up $12.00 an ounce to $1549.20.
