Gold prices trade flat ahead of a pivotal Fed meeting, with investors weighing the impact of a widely expected interest rate hike on precious metals and alternative assets.
Gold prices flat ahead of Fed decision, with rate hike expectations posing a headwind.
Silver mentioned as a gold alternative, also sensitive to interest rate expectations.
Bitcoin cited as an alternative to gold, facing similar rate headwinds.
Ethereum mentioned alongside bitcoin as a gold alternative.
Barrick Gold mentioned as a large-cap gold mining stock investment example.
Franco-Nevada cited as a liquid gold mining stock for investment.
SPDR Gold Shares ETF highlighted as largest gold ETF backed by physical gold.
iShares Gold Trust mentioned as a heavily traded gold ETF.
Costco noted as a retailer selling physical gold bars.
Gold futures remain stable near $4,389 per troy ounce as investors brace for a potential Federal Reserve interest rate hike. Market sentiment reflects a 92.5% probability of a 25-basis-point increase, which would mark the first such move in three years and create headwinds for non-yielding assets like precious metals and cryptocurrencies.
Gold is a non-yielding asset, meaning it does not pay interest or dividends. When interest rates rise, the opportunity cost of holding gold increases, making interest-bearing investments more attractive to investors.