Gold edges higher ahead of key Fed rate verdict

A selection of gold jewellery displayed in the window of a store in the Dubai Gold Souk in Deira, in the United Arab Emirates.

Yui Mok | Pa Images | Getty Images

Gold prices ticked higher on Wednesday, supported by a pullback in the dollar, although investors were focused on the U.S. Federal Reserve outlook on future pace of interest rate hikes as the central bank’s policy meeting concludes later in the day.


Spot gold was up 0.2% at $1,650.13 per ounce, as of 0100 GMT, while U.S. gold futures also gained 0.2% to $1,652.10.

The dollar index edged 0.1% lower, making the greenback-priced gold less expensive for holders of other currency.

U.S. job openings unexpectedly rose in September, suggesting demand for labor remained strong, providing evidence that rapid interest rate hikes have yet to bite hard in the real economy.

Investors widely expect the Fed will raise its benchmark overnight interest rate by 75 basis points, the fourth such increase in a row.

Gold is highly sensitive to rising U.S. interest rates, as that increase the opportunity cost of holding the non-yielding metal and boosts the dollar.

Global factory output weakened in October as widespread recession fears, high inflation and China’s zero-Covid policy hurt demand, business surveys showed on Tuesday, adding to persistent supply disruptions and darkening recovery prospects.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16% to 919.12 tons on Tuesday from 920.57 tons on Monday.

Spot silver fell 0.1% to $19.63 per ounce, having hit a three-week peak on Tuesday. Platinum rose 0.4% to $946.18 and palladium was 0.5% higher at $1,889.47.

Read More: Gold edges higher ahead of key Fed rate verdict

2022-11-01 19:56:00

Notify of
Inline Feedbacks
View all comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More