Gold fund GLD up 0.41% at $368.12 a share as traders reassess the Fed rate path
The Federal Reserve is expected to hold rates this week.
Published
Chart: GLD, a fund that holds gold, one-minute prices, three sessions
Gold rose as much as 0.8 per cent on Monday to reclaim the $4,000-an-ounce level. It was recovering from a decline of more than 4 per cent last week, as investors reassessed the Federal Reserve's rate outlook.
In after-hours trading, spot gold was up 0.4 per cent at $4,012.51. Silver was little changed at $53.86.
By October 22, traders had pulled back their bets on a Fed rate hike in 2026 entirely. Long-dated Treasury yields have been under pressure from the same repricing. The Fed is expected to hold rates this week. Principal Asset Management's Seema Shah still expects a hike in December and another in 2027.
Fed officials are split. Hammack, Goolsbee and Collins are pressing for more tightening. Williams has said no 2027 hike is needed, and Bowman has been patient. That split has whipsawed gold through October's selloff and this recovery. Higher-for-longer rate expectations raise the cost of holding bullion, while any pause or pivot removes that drag. With the rate path still unresolved ahead of this week's meeting, gold's reclaim of $4,000 shows how quickly that calculus can swing in either direction.
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