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Gold holds steady as traders focus on Fed

Gold holds steady as traders focus on Fed

Gold held steady on Wednesday after a sharp drop in the previous session, as investors looked for clues on the pace of tapering by the US Federal Reserve at the end of a two-day policy meeting.

Fundamentals

  • Spot gold was up 0.1% to $1,772.12 per ounce by 0126 GMT. US gold futures were unchanged at $1,771.60.

  • The dollar index held firm against rival currencies.

Spot gold may fall into $1,769-$1,778 range; bounce set to end

  • The US central bank’s two-day monetary policy meeting is set to end later in the day, with investors expecting the Fed to announce a faster wind-down of asset purchases.

  • The European Central Bank, the Bank of England and the Bank of Japan are also scheduled to meet this week.

  • Bank of Japan Governor Haruhiko Kuroda said the country’s consumer inflation may approach 2% through various channels, reflecting recent increases in raw material costs.

  • British payrolls rose by a record 257,000 in November, underscoring the Bank of England’s dilemma as it meets on interest rates this week.

  • Wall Street ended lower on Tuesday after data showed producer prices increased more than expected in November, while the fast-spreading Omicron coronavirus variant also dampened investor sentiment.

  • Spot silver rose 0.1% to $21.95 an ounce.

  • Platinum shed 0.1% to $919.05 and palladium gained 0.6% to $1,631.19.

Source: Business Recorder

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