Ahead of the Federal Reserve interest rate meeting, spot gold maintained weak consolidation. Overnight, gold prices dipped to $4253.63 per troy ounce, the lowest level since August 10, then rebounded near $4317 before falling back again, finally closing at $4298.60 per troy ounce, down 1.10%; spot silver closed at $63.166 per troy ounce, down 1.78%.

During Tuesday's ASIan session, spot gold opened at $4300.59 per troy ounce. Gold prices rebounded after oscillating at the daily low of $4283.54 per troy ounce, peaking at $4317.15 per troy ounce. At the time of writing, gold was consolidating around $4310 per troy ounce, up 0.27% intraday.

Reviewing the European and US market action overnight, the US Dollar Index surged to 99.74 then retreated, eventually closing at 99.47 with gains narrowed to 0.39%. The 2-year US Treasury yield rose 1.8 bASIs points to settle at 4.662%; the 10-year US Treasury yield climbed 1.6 bASIs points to 4.991%; the 30-year US Treasury yield dropped 0.8 bASIs points to 5.346%.

WTI and Brent crude oil edged higher before pulling back slightly. WTI crude oil closed at $101.74 per barrel, up 1.86%; Brent crude oil settled at $106.03 per barrel, up 1.61%. US Natural Gas CFD closed at $3.038 per MMBtu, up 2.118%.

The three major US stock indices closed lower collectively. By the closing bell, the Dow Jones Industrial Average fell 152.01 points, or 0.29%, to 52421.28; the S&P 500 dropped 37.03 points, or 0.48%, to 7619.95; the Nasdaq Composite declined 146.62 points, or 0.56%, to 26186.41.

Major European stock indices posted mixed results. The German DAX 30 fell 0.43% to 25446.41; the UK FTSE 100 rose 0.48% to 10701.41; the French CAC 40 dropped 0.76% to 8117.78; the Euro Stoxx 50 fell 0.95% to 6265.25; the Spanish IBEX 35 declined 1.34% to 19573.31; the Italian FTSE MIB lost 1.60% to 51673.50.

Overnight, the Shanghai Gold Exchange Au(T+D) closed down 0.7% at CNY 931.58 per gram; Ag(T+D) closed down 0.4% at CNY 15525.0 per kilogram. In early trading today, SGE Au(T+D) dipped 0.7% to CNY 931.58 per gram; Ag(T+D) fell 1.07% to CNY 15420.0 per kilogram.

Holdings of SPDR Gold Trust, the world's largest gold ETF, remained unchanged from the previous trading day, standing at 1047.425 tons. Holdings of iShares Silver Trust, the world's largest silver ETF, decreased by 25.28 tons to 15291.6 tons.

Today's central parity rate of RMB in the foreign exchange market: USD/CNY at 6.7670, down 28 pips (RMB appreciation); EUR/CNY at 7.7811, down 338 pips; HKD/CNY at 0.8627, down 5.5 pips; GBP/CNY at 9.0992, down 193 pips; AUD/CNY at 4.8091, down 140 pips; CAD/CNY at 4.8453, down 141 pips; 100JPY/CNY at 4.3592, down 207 pips; CNY/RUB at 12.5721, up 378 pips; NZD/CNY at 3.8933, down 224 pips; CNY/MYR at 0.60359, up 12.9 pips; CHF/CNY at 8.2526, down 82 pips; SGD/CNY at 5.3068, down 144 pips.

Latest data released overnight showed Canada's August CPI MoM at -0.1%, against an expectation of 0% and a prior reading of 0.50%. Canada's August CPI YoY stood at 3%, matching expectations and the previous figure of 3.00%.

Canada's annual inflation rate held steady at 3% in August, supported by sustained firm crude oil prices lifting gasoline costs, while food prices saw only a mild slowdown. Meanwhile, the 50% tariffs imposed by the US and Canada's retaliatory measures will affect costs across the month. The Bank of Canada previously stated it would not hesitate to raise rates multiple times if inflation remains high and impacts closely watched core metrics.

On the eve of the Fed meeting, the 10-year US Treasury yield briefly hit the key psychological level of 5% yesterday for the first time in nearly three years, intensifying market expectations that the Fed will raise interest rates to curb inflation. Yields kept climbing amid rising rate hike expectations, increased corporate and government debt supply, optimistic economic growth prospects, and concerns over America's long-term fiscal path. Analysts project that the US fiscal deficit and overall debt stock will keep expanding.

As US total debt is projected to exceed $41.1 trillion by 2027, the outcome of the upcoming November midterm elections will become a critical variable determining this crisis. Once the Treasury exhausts extraordinary measures to avoid catastrophic default, Congress must pass legislation to raise or suspend the debt ceiling. In addition, Trump stated last week that if Republicans win the midterm elections, he will issue $5000 to every American, which outside observers believe will further accelerate the US hitting the debt ceiling.

Reports said Saudi Crown Prince met with US Army Central Command Commander Cooper yesterday. The two sides discussed bilateral relations between Saudi Arabia and the United States as well as regional situations. Sources revealed that a key Saudi oil pipeline attacked last week, a critical component of Saudi oil export strategy, may take three to five weeks to repair damaged sections.

Trump claimed Russia and Ukraine have agreed not to target each other's energy assets. Zelensky stated Ukraine will reciprocally halt strikes against Russia's critical infrastructure if Russia stops attacking Ukraine's key infrastructure. Trump said Iran hopes to reach an agreement quickly and remains open to engagement with Iran. Iranian media refuted that Trump continues to spread falsehoods, and Iran stated no negotiations will take place until Iran's conditions are met.

From the gold daily chart, gold briefly broke below the 50-day moving average overnight before rebounding, yet remains capped below the convergence of the 5-day and 100-day moving averages. Gold is estimated to maintain weak consolidation in the short term. On daily indicators, the MACD histogram shrinks sharply near the zero line, and the RSI hovers around the 45 level.

On the 1-hour gold chart, the BOLLinger Bands contracted after opening wide, and gold oscillates between the middle and upper bands. Short-term moving averages EMA5 and EMA10 turned bullish but are flattening. The negative MACD histogram is gradually shrinking, and the RSI rebounded to hover near the 50 level. For intraday short-term trading, watch gold consolidate within the $4280-$4325 range. A breakout upward targets $4335-$4345 or near $4355; a breakdown lower targets $4273-$4265 or near $4253.

Key financial data and events to watch today:

14:00 UK ILO Unemployment Rate for 3 months ending July

14:00 UK August Unemployment Rate

14:00 UK August Claimant Count Change

14:45 France August CPI MoM Final

17:00 Germany September ZEW Economic Sentiment Index

17:00 Eurozone September ZEW Economic Sentiment Index

17:00 Eurozone July Seasonally Adjusted Trade Balance

20:15 US ADP Nonfarm Employment Change for the week ending August 29

20:30 Canada July Wholesale Sales MoM

20:30 US September NY Empire State Manufacturing Index

04:30 (next day) US API Crude Oil Stock Change for the week ending September 11

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