Gold Prices Climb Ahead of Fed Meeting


© Reuters. Gold prices traded higher on Wednesday

Investing.com – Gold prices traded higher on Wednesday ahead of the upcoming Federal Reserve policy meeting later in the day.

for June delivery on the Comex division of the New York Mercantile Exchange was up $4.0, or 0.31%, to $1,310.8 a troy ounce by 12:52AM ET (04:52 GMT).

The Federal Reserve is widely expected to keep the benchmark lending rate, but traders would focus on whether the Fed would change the outlook for future rate hikes this year, after recent data suggested signs of possible acceleration in the U.S. economy.

Meanwhile, the dollar pulled back after recording its biggest jump in more than a week earlier in the day. The that tracks the greenback against a basket of six major currencies last stood at 92.20, down 0.09%.

The dollar was supported by the outlook for a strong U.S. economy and rising yields amid signs of slowdown elsewhere.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a fall in the dollar makes gold less expensive for holders of foreign currency and thus increases demand for the precious metal.

In other precious metal trade, gained 1.20% to $16.320 a troy ounce, and climbed 0.3% to $897.2 an ounce.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments