Short-term interest rate markets are pricing in nearly a 100% chance of a Fed hike on Wednesday this week when the Fed meets. Interest rates are expected to rise to 5.375% from 5.125%. Gold prices have been gaining recently after the latest US CPI print showed a decent fall in the core reading. So, what will happen to gold prices over the Fed meeting?

Over the last 10 years, gold has gained on average +0.94% in the 10 days after meetings where the Federal Reserve has hiked interest rates. So, are further gains ahead for gold?

Major Trade Risks: The main risk here would be a hawkish Fed policy meeting where it stresses higher rates still to come.

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