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Gold Prices on Pause Ahead of Expected Fed Rate Hike

Published 06/13/2018, 10:08 AM
Updated 06/13/2018, 10:12 AM
© Reuters.  Gold inches slightly higher, remains cautious ahead of Fed interest rate decision
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Investing.com - Gold prices were little changed in midmorning trade on Wednesday as traders looked ahead to the Federal Reserve’s policy decision.

At 10:06AM ET (14:06GMT), gold futures for August delivery on the Comex division of the New York Mercantile Exchange inched up 70 cents, or 0.05%, to $1,300.10 a troy ounce.

According to data released on Wednesday, producer price inflation accelerated more than expected in May, underlining the case for the Fed to stick to its plans to hike interest rates gradually.

Markets expect the U.S. central bank to hike interest rates by 25 basis points, bringing federal funds rate target to a range between 1.75% and 2.00%, when it announces its decision at 2:00PM ET (18:00GMT) Wednesday.

With the move more than 90% priced in, market participants are focusing on whether the Fed will hint at the prospect of four rate hikes in 2018, compared to its forecast for three further increases back in March.

In other metals trading, silver futures gained 0.5% at $16.975 a troy ounce by 10:07AM ET (14:07GMT).

Palladium futures slid 1.1% to $1,004.50.90 an ounce, while sister metal platinum dropped 0.2% at $899.50.

In base metals, copper rose 0.3% to $3.260 a pound.

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