Gold Holds Steady Near $4,140 as Fed Hike Odds Decline and USD Strength Persists

Gold prices remained stable near $4,140 during the early Asian session on Tuesday, influenced by a stronger US Dollar and elevated US Treasury yields, according to FX Street. Despite these pressures, the precious metal was supported by a notable drop in expectations for a Federal Reserve rate hike in October.

FX Street reported that the probability of a Fed rate increase this month has decreased significantly, falling from about two in three in late September to roughly one in five. Meanwhile, the GBP/USD currency pair traded just above 1.3200, staying within the range it has maintained since September 24.

For Japanese investors, the shifts in US monetary policy and currency movements remain key factors impacting risk sentiment and asset allocation decisions across FX, crypto, and equities markets.