Gold Steadies Near $4,155 as Fed Official Signals One More Hike, No Tightening in 2027

Gold held steady near $4,155 an ounce in early Asian trade on Wednesday after a Federal Reserve official signaled that one additional interest-rate increase may still be needed this year, but that further tightening would not be necessary in 2027. The remarks tempered aggressive rate-hike bets while leaving a December move firmly on the table, with markets pricing in roughly a 90% probability of a hike that month.

Bullion had already slid 0.8% over the prior two sessions, caught between safe-haven demand linked to Middle East tensions and headwinds from a firm dollar that had risen to near an 18-month high, making dollar-denominated gold more expensive for foreign buyers. Oil prices also moved higher as a renewed flare-up in attacks in the region threatened further energy disruptions, adding an inflationary dimension that complicated the outlook for monetary policy.

All eyes turned to the U.S. Consumer Price Index report due later Wednesday, which investors and analysts expected would be decisive for gold's near-term direction. A hotter-than-expected reading, particularly in core CPI, could reinforce the case for a December hike and weigh further on bullion, while a softer print could ease pressure on the metal. Asian currencies also consolidated against the dollar ahead of the data release as traders held back from making large directional bets.