Gold little changed ahead of Fed and other rate decisions
Investing.com — Sit and wait: That’s what the gold trading community seems to have decided ahead of Wednesday’s monetary policy update from the Federal Reserve and other central bank rate decisions due this week.
Gold’s most-active futures contract on New York’s Comex, December, settled at $1953.70 ounce, up just 30 cents on the day.
The spot price of gold was at $1,932.09 by 15:49 ET (19:49 GMT). Spot gold, determined by real-time trades in physical bullion and more closely followed than futures by some traders, was down $1.65, or 0.1%, on the day.
Gold’s most-active futures contract on New York’s Comex, December, settled at $1946.20 ounce, up $13.30, or 0.7%, on the day. For the week, the benchmark gold futures contract rose $3.50, or 0.2%.
“Gold traders are stuck in a wait-and-see mode as Central Bank-a-Palooza will deliver a make-or-break moment for bullion,” Ed Moya, analyst at online trading platform OANDA said, referring to rate decisions due from the Fed, Bank of England, Bank of Japan and People’s Bank of China.
Moya added:
“The 10-year Treasury yield is hovering right at the August highs, potentially poised to set new cycle highs. The focus for gold traders will start with the Fed, but then quickly shift to the BOE and BOJ policy decisions.”
“If optimism grows that most of the advanced world is done raising rates, that would be good news for gold. That might be hard given the Fed and BOE might refrain from signaling that they are done hiking just yet. If Wall Street begins to worry about hard landings, then gold, despite some dollar strength, might start attracting some safe-haven flows.”
Global markets are adjusting to a new outlook for rate hikes after the European Central Bank on Thursday raised rates to a
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