The 19-year-old from Motherwell was much tighter than Oteng from the start of the bout, causing his African opponent to miss and impressing the judges with scoring blows, but he suffered a cut on his left eyebrow thanks to a clash of heads in the opening round that will have to be carefully managed.
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McFadden went on to outbox Oteng over the final three rounds to record a resounding victory and ensure he will win at least a bronze in his weight category, but he has made it clear he is in no mood for anything other than gold with the Australia, Andrew Moloney, waiting in the last four.
"I am more than capable of beating him," said McFadden. "I have sparred with him and got the better of him there. That gold is coming down to my club, Forgewood."
Meanwhile, Ross Henderson went out on his shield with a brave display against the powerful hands of Joe Joyce in the quarter-finals of the super-heavyweight division.
The Motherwell-based fighter opened in aggressive fashion and attempted to take the fight to his English opponent, but was outpunched and outclassed before Italian referee Gerardo Poggi stopped the contest with 10 seconds of the third round remaining.
Henderson was dropped with two strong rights to the body in the first round and forced to take a second standing count before the bell after taking a right to the head. He would be given standing counts in both the second and third rounds, but kept swinging punches in search of a knockout before the bout was finally called to a halt.
"He burst my eardrum in the second round," revealed Henderson. "I should maybe have boxed better, but I got carried away and knew I had to upset his rhythm to have a chance. I am not one for bottling it and I will be back."