News

Gold Futures Rise Ahead of Federal Reserve Decision

1 Mins read

Gold futures edged higher early Tuesday, building on the yellow metal’s highest close in more than two weeks as traders awaited this week’s Federal Reserve decision for clues on interest rates.

Price Action

  • Gold for December delivery (GC00) rose $2.90, or 0.2%, to $1,956.30 an ounce on Comex, after ending Monday’s session at its highest since Sept. 1.
  • December silver (SIZ23) was up 10.7 cents, or 0.5%, at $23.605 an ounce.

Market Drivers

Gold has largely traded sideways since spring, and is off around 0.5% so far in September. It has seen pressure as Treasury yields advanced and the U.S. dollar strengthened. Higher yields raise the opportunity cost of holding nonyielding assets like gold, while a stronger dollar makes commodities more expensive to users of other currencies.

The Federal Reserve is fully expected to leave interest rates unchanged Wednesday when it concludes a two-day policy meeting, but investors will be looking for clues as to whether a further rate increase may be in store.

“The question now for gold traders is whether the Fed is willing to acknowledge that it’s probably done with rate hikes, as we heard from the ECB last week, or continue to insist another is likely,” said Craig Erlam, senior market analyst at Oanda, in a note.

“The dot plot will be key to this but as always, traders will hang on Powell’s every word. A hawkish tone from the Fed could put $1,900 in jeopardy,” he wrote. The dot plot is the graph of interest-rate projections from individual Fed policy makers.

Related posts
News

IMF commends Sri Lanka's new govt for reform continuation

1 Mins read
COLOMBO, Apr 25: The International Monetary Fund (IMF) on Friday commended the Sri Lankan government, led by President Anura Kumara Dissanayake, for…
News

U.S. Federal Reserve revokes crypto guidance for banks

1 Mins read
25th April 2025 – (Washington) The U.S. Federal Reserve announced on 24th April that it will withdraw previous guidance requiring state member…
News

Largo Reports Q1 2025 Production and Sales Results; Provides Update on Operational Turnaround Plans By Investing.com

7 Mins read
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.Trending NowBest Forex Trading Robots To Invest In 2022 Q1…

Leave a Reply

Your email address will not be published. Required fields are marked *

8 + 1 =