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Gold Gains, Dollar Unchanged; U.S. Fed in Focus

Published 09/26/2018, 01:26 AM
Gold prices gained while the U.S. dollar remained unchanged
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Investing.com - Gold prices gained while the U.S. dollar remained unchanged on Wednesday as investors awaited details of the U.S. Federal Reserve's two-day meeting due later in the day.

The Fed is widely expected to hike interest rates later in the day. Markets also anticipate another rate hike before the year end, although the outlook for 2019 is less clear, according to analysts.

As well as an interest rate decision, the Federal Reserve will also serve up its summary of economic projections, outlining policymakers' expectations on economic growth, inflation and unemployment.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained 0.13% to $1,206.70 a troy ounce by 1:20AM ET (05:20 GMT).

Higher interest rates increase bond yields, making non-interest bearing gold less attractive to investors. They also tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies.

The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, was unchanged at 93.73. The index has slipped around 3% since August.

The dollar has been the preferred safe-haven asset over gold in recent months as traders were prompted to buy the U.S. currency in the belief that the United States has less to lose from the dispute.

Elsewhere in metals trading, December silver futures edged up 0.3% to $14.535 a troy ounce, while January platinum futures was trading at $829.80, up 0.5% for the day.

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