Spot gold rose 0.4% at $1,806.00 per ounce, and U.S. gold futures added 0.4% to $1,806.90
Prices of gold firmed on Wednesday above the key psychological level of $1,800 on a weaker dollar, though gains were capped as investors awaited a Federal Reserve meeting for clues on the U.S. central bank’s policy tapering plans.
Spot gold rose 0.4% at $1,806.00 per ounce, as of 0328 GMT. U.S. gold futures added 0.4% to $1,806.90.
Gold is benefiting from some risk-hedging buying by investors ahead of tonight’s FOMC (Federal Open Market Committee) meeting outcome, Jeffrey Halley, a senior market analyst, Asia Pacific at OANDA said.
Overall, gold remains anchored within a broader $1,790-$1,810 range and lacks the momentum to convincingly break either side for now. That may change post-FOMC, he said.
Fed’s policy statement is due at 1800 GMT later in the day which would be followed by a news conference by Chairman Jerome Powell.
Bullion dipped 7% in June on the Fed’s hawkish tone in its last meeting.
Investors will look for cues on when the central bank will begin to taper its monetary support amid fast-rising prices and the looming threat from Delta variant of coronavirus.
The Fed will likely announce the first of a scheduled round of reductions to its bond purchase program, but will leave its rate rising schedule still some ways down the road, Edward Meir, analyst with ED&F Man Capital Markets said in a note. However, any selloff in gold will be more measured as the complex has discounted much of the Fed move already.
Meanwhile, the U.S. dollar was below the 3-1/2-month peak hit last week, due to a decline in real yields and trepidation ahead of the Fed’s policy decision.
Asian shares were also at a seven-month low on Wednesday.
Silver gained 0.6% to $24.81 per ounce, after hitting $24.46 on Tuesday – its lowest level in nearly four months.
Palladium inched up 0.3% to $2,615.60 per ounce, while platinum jumped 0.8% to $1,058.61.
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