Gold Trades Steady as Investors Await Fed Decision – Gold Silver Reports

Gold traded almost steady on Wednesday as investors awaited the U.S. Federal Reserve’s monetary policy decision later in the day, while expectations of an improvement in trade relationship between the United States and China dented the metal’s appeal.

FUNDAMENTALS UPDATES

📌 U.S. President Donald Trump said on Tuesday he had spoken to Chinese President Xi Jinping and that the two leaders’ teams would restart trade talks after a long lull in order to prepare for a meeting at the G20 summit later this month.

📌 U.S. gold futures were down 0.1% at $1,349.40 an ounce.

📌 Asian share markets jumped on Wednesday as investors dared to hope the Federal Reserve would follow the lead of the European Central Bank and open the door to future rate cuts at its policy meeting later in the day.

📌 Spot gold was steady at $1,345.28 as of 0130 GMT.

📌 The European Central Bank will need to ease policy again, possibly through new rate cuts or asset purchases, if inflation doesn’t head back to its target, ECB President Mario Draghi said on Tuesday.

📌 The Fed is expected to leave borrowing costs unchanged at a policy meeting this week but possibly lay the groundwork for a rate cut later this year.

📌 The dollar held near a two-week high early on Wednesday ahead of the Fed’s closely-watched policy decision later in the day, supported by a surprisingly dovish European Central Bank and bearish eurozone economic data.

📌 Comments from Draghi weighed on U.S. Treasury yields with U.S. benchmark 10-year yields falling to their lowest since early September 2017, while 30-year yields dropped to their weakest level since late October 2016.

📌 Trump on Tuesday kept up pressure on the Fed to lower interest rates, following a report that White House lawyers earlier this year explored whether they could legally strip Jerome Powell of the Fed chairmanship.

📌 All eyes are now on the U.S. Federal Reserve which is scheduled to release a statement at 1800 GMT on Wednesday, followed by a press conference by Chairman Jerome Powell.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

2 thoughts on “Gold Trades Steady as Investors Await Fed Decision – Gold Silver Reports”

  1. अमेरिका में आज फेडरल रिजर्व का ब्याज दरों पर फैसला आएगा और इससे पहले सोने की चाल छोटे दायरे में सिमट गई है। बाजार की नजर इस बैठक के फैसले पर टिकी हुई है। इस बीच चीन के साथ चल रहे ट्रेड वॉर को लेकर अमेरिका की ओर से राहत की खबर आई है। अमेरिकी राष्ट्रपति डॉनल्ड ट्रंप ने दोनों देशों के बीच सुलह होने की उम्मीद जताई है।

  2. ट्रेड वॉर पर अमेरिका के रुख से कच्चे तेल में तेजी आई है और इसका दाम 1 फीसदी बढ़ गया है। वहीं अमेरिका में भंडार 8.12 लाख बैरल गिरने से भी कीमतों को सपोर्ट मिला है। खबर ये भी है कि इराके के बसरा में तेल कंपनी पर पर रॉकेट से हमला हुआ है।

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