Gold steadied near $4,000 after falling oil prices cooled inflation concerns. Crude pulled back from last week's surge — still near six-month highs — amid hopes of easing US-Iran tensions, removing a key upward inflation impulse that had pressured bullion.
Markets brace for Wednesday's Fed announcement, with policymakers widely expected to hold rates steady after September's hike. The CME FedWatch Tool now prices a December rate increase at over 80% probability — a hawkish tilt that has kept a lid on gold's upside.
Thursday's US PCE inflation report is the next key catalyst for the rate outlook, while attention also turns to the November 3 midterm elections. The ECB and Bank of Japan are expected to hold, while the Bank of Canada is seen delivering its first hike since 2023.