Gold Price Today, October 27: Yellow metal holds above $4,000 ahead of Fed's FOMC decision

Gold Price Today, October 27: Gold prices were nearly unchanged on Tuesday, hovering above the USD 4,000 mark as strength in the US dollar offset support from cooling energy prices. Market participants are also awaiting the US Federal Reserve's upcoming Federal Open Market Committee (FOMC) meeting decision, due on October 28.

As of 7:10 am, spot gold was nearly unchanged at USD 4,017.16 per ounce. Prices ended higher in the previous session after slipping below the USD 4,000 mark. On the spot silver front, prices rose 0.3 per cent to USD 54.1165 per ounce.

In the domestic market, gold and silver futures were not trading at the time of writing this report. However, gold and silver futures on the Multi-Commodity Exchange (MCX) were at Rs 143150 per 10g and Rs 195900 per kg, respectively.

US Dollar Index, crude oil prices in focus

The US dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.1 per cent higher at 102.07.

A stronger US dollar makes gold more expensive for holders of other currencies, potentially reducing demand and putting downward pressure on bullion prices.

The pressure from the stronger dollar was countered by cooling energy prices. Brent crude oil futures were trading about 1 per cent lower at 109.83, while West Texas Intermediate (WTI) futures mirrored the same trend.

Cooling energy prices ease inflation concerns and reduce the likelihood of interest rate hikes, supporting gold by lowering bond yields and weakening the US dollar.

Last 10 Days Price of Gold

Gold prices today: Fed rate decision awaited

Market participants are also tracking expectations surrounding the US Federal Reserve's upcoming interest rate decision.

According to CME's FedWatch Tool, there was a 10 per cent probability of an interest rate hike during the FOMC meeting, while the probability of interest rates remaining unchanged stood at 90 per cent.

Lower expectations of interest rate hikes support gold by reducing the opportunity cost of holding the non-yielding metal and often weakening the US dollar.

Global market participants will closely monitor the Fed's FOMC meeting decision due on October 28 for further indications regarding the yellow metal's direction.

Inflation data, US-Iran conflict among key triggers

Along with the Federal Reserve's policy decision, attention will also be on inflation data due on Thursday, which may provide additional insights into the condition of the world's largest economy.

Developments surrounding the US-Iran conflict will also remain among the key factors to watch for bullion prices.

According to a report by The Wall Street Journal, Middle Eastern mediators have been seeking to revive negotiations between Washington and Tehran as the US prepares additional military options against Iran.

Market participants will continue to monitor these developments alongside the Federal Reserve's policy decision and upcoming inflation data.