Yesterday, the Federal Reserve kept interest rates unchanged at its rate decision meeting. However, market participants believe that remarks made during the press conference suggest a high probability of one rate hike in December to rein in inflation. Drawing on the historical pattern whereby precious metals tend to price in rate hike expectations in advance, near-term pressure on precious metals is anticipated.
Market participants also note that a US–Iran agreement could potentially be signed within the next few days. That said, given that precious metals already showed fading upward momentum in the first half of this week, the market impact of geopolitical developments may now be increasingly limited.
