Gold Stable, Eyes on Fed Meeting

Gold prices rose on Wednesday, September 16th, thanks to the dollar’s decline, as investors awaited the outcome of a meeting of the Federal Reserve (US Central Bank) in search of details of the bank’s plans to balance interest rates against its inflation target.

Gold rose in the spot market 0.2% to 1959.38 dollars an ounce by 06:45 GMT. And US futures rose 0.1% to 1968.20 dollars. The dollar remained weak against its rivals, which provided support for gold.

“People are unwilling to trade due to the Federal Reserve announcement later today … They are awaiting more clarity on which monetary tools the board is expected to use to support its inflation target of above 2%,” said Brian Lan, managing director at Gold Silver Trading in Singapore. .

The council’s decision is due to be announced by 18:00 GMT, followed by a half-hour press conference by President Jerome Powell.

Last month, the Fed adopted a more accommodative approach to inflation and pledged to keep interest rates low for an extended period.

The low US interest rates impose pressure on the dollar and bond yields, which increases the attractiveness of the yellow metal, which does not yield a return, which is also used as a hedge against inflation and the depreciation of the currency.

As for other precious metals, silver rose 0.1% to $ 27.26 an ounce, while platinum fell 0.6% to $ 971.96, and palladium fell 1.5% to $ 2373.76.