Gold slips 0.3% to $4,125.90 as traders price in December Fed hike; PCE data in focus

Gold edged lower on Tuesday as investors weighed the likelihood of further U.S. rate hikes this year ahead of next week's Federal Reserve policy meeting. Spot gold fell 0.3% to $4,125.90 per ounce by 02:05 p.m. EDT, while U.S. December futures settled 0.4% lower at $4,142.60. Traders see a 92% chance of a December hike, per CME's FedWatch Tool, though recent Fed comments have tempered expectations for action at the October 27-28 meeting. The Fed raised rates a quarter point in September, its first hike this year. "$4,000 is a big level for (gold) to keep an eye on," said StoneX's Bob Haberkorn, noting Treasuries look more favorable as a safety asset for now. Gold is down about 26% from its January record of $5,594.82 and roughly 22% from levels at the start of the Iran war. Investors await next week's PCE inflation data. Spot silver rose 1.4% to $57.86 an ounce, platinum gained 1% to $1,656.85 and palladium fell 1.3% to $1,105.50.