(Bloomberg) — Gold fell — narrowing what is set to be its third straight month of gains — as investor focus turned to this week’s Federal Reserve rate-decision meeting at which policymakers are expected to strike a hawkish tone.
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Bullion edged lower to trade around $2,320 an ounce — though it was still up about 4% for the month — ahead of the Federal Open Market Committee decision on Wednesday. Officials are seen making a hawkish pivot following hotter-than-expected inflation data, with the possibility that the central bank may be forced to backtrack from Fed Chair Jerome Powell’s hints of swifter rate cuts back in December.
Swaps traders are now pricing for the Fed to deliver at most two cuts by the end of the year — the fewest number of expected reductions since November 2023. Higher rates are typically negative for gold as it doesn’t pay…
