Precious metals are stabilising ahead of a key risk event, the expected interest rate hike by the US Federal Reserve on Wednesday. Saxo Bank’s head of commodity strategy Ole Hansen looks at potential market moves.

Gold rallied following rate hikes by the FOMC in 2015 and 2016. But Hansen says a repeat rally depends on geopolitical developments and the expectation for future rate hikes following the FOMC’s announcement.

Multiple events include the Turkey-Netherlands standoff; a Japan-China standoff in the South China sea; American politics in the Trump era; and the run-up to the French presidential election.