Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Gold Up In A Tight Range As Fed Decision Grows Nearer

ByICN.com
Published 12/18/2013, 08:11 AM
Updated 07/09/2023, 06:31 AM
GC
-

Gold prices stuck in a tight range Wednesday, gyrating between minor gains and losses as investors were cautious ahead of the Federal Reserve`s decision to either keep or cut back its massive monetary stimulus.

The Fed is scheduled to announce its policy decision at 2 p.m. Eastern time, a half-hour after the close of the Comex gold trading session.

The bond-buying program, also known as quantitative easing, has been a supportive factor for gold prices, mostly as a hedge against inflation.

The spot price of gold has fallen some 26 percent this year on the growing acceptance that the US Federal Reserve will start to reduce its $85 billion a month bond purchases, to address an ultra-loose monetary policy which pushed gold pricing to record highs in 2011.

Aside from a few outliers, the general consensus among fund managers is that no tapering of the Fed’s monthly bond purchases would be put into action just yet.

Among 46 economists surveyed by The Wall Street Journal, one-fourth predicted the central bank would announce a taper on Wednesday, while one-third expected the move in January. A little more than a third saw the central bank acting at its March meeting, and two economists expected the taper to come after March.

On Tuesday, gold futures saw their modest two-day winning streak come to an end, closing the session with a loss of 1.2%.

- Spot gold last traded at $1232.01 an ounce, up 0.1%. February Comex gold was last up 0.1% at $1231.30. As of 10:40 a.m. ET.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.