Gold hovers around $1667 ahead of FOMC decision

Gold has benefited from increasing tensions in East Europe. So, gold price snaps two days of consecutive losses and climbs, despite broad US dollar strength, courtesy of increasing tensions between Ukraine and Russia.

Investors’ pursuit of safety bolstered the precious metal. At the time of writing, XAU/USD is trading at $1667.40 per ounce, above its opening price of $1664.68.

US equities are slightly up, ahead of the Fed’s decision. US Treasury bond yields are retreating from their YTD highs, augmenting the appetite for precious metals, after news reported that Russian President Vladimir Putin is preparing to deploy 300K additional troops towards “defending” the regions of Donbas and Luhansk.

Aside from this, traders are laser-focused on the Fed’s decision. The US central bank is widely expected to raise rates by 75 bps, though there’s a slim 18% chance of going for 100 bps.