Gold Prices Stabilize, Focus on Fed Meeting

Gold prices stabilized on Wednesday, December 15, after falling sharply in the previous session, as investors awaited the Federal Reserve’s decision to reduce the stimulus measures it took in the face of the Covid-19 pandemic.

Traders are closely watching the Fed’s moves to see if it will speed up the pace of reducing its bond-buying program or adjust its expectations for when to raise interest rates next year.

Reducing stimulus and raising interest rates would push government bond yields higher, increasing the opportunity cost of buying non-yielding gold.

The European Central Bank, the Bank of England, and the Bank of Japan are also scheduled to hold monetary policy meetings this week.

The price of gold settled in spot transactions at $ 1767.71 an ounce, and it had approached its lowest level in two weeks, recording $ 1766 earlier today, after falling by 1% in the previous session.

US gold futures fell 0.3% to $1,767.80, silver fell 0.1% to $21.90 an ounce.