Gold is moving in a narrow range amid anticipation of the US interest rate decision

Gold prices moved in a narrow range on Wednesday, with some investors reluctant to trade pending the Federal Reserve’s decision on interest rates and a clearer picture regarding the future of monetary policy.

Gold settled in spot transactions at $ 1940.11 an ounce by 0540 GMT, after falling 2 percent on Tuesday. US gold futures rose 0.1 percent to $1,942.10.

“The market is still witnessing rapid developments, but according to the current situation, it seems that the wounds of the banking sector have begun to heal after the emergency support packages and the authorities’ reassurances,” said Christopher Wong, a strategist at (OCBC) for currency trading. “Gold declined with declining demand.” It is a safe haven.”

The precious metal recently jumped about ten percent, or about $ 180, to its highest level in a year, thanks to the demand for it as a safe haven after the collapse of the US Silicon Valley bank and the crisis in Credit Suisse. But prices calmed after the Credit Suisse bailout revived risk appetite, despite continued uncertainty about the financial system.

Treasury Secretary Janet Yellen told bankers on Tuesday that the US banking system was stabilizing but that more steps may be needed “if small businesses face a run of deposits that poses a spillover threat.”

Investors’ eyes are now focused on the US Federal Reserve’s decision, which is scheduled to be issued at 1800 GMT, to be followed by a press conference by Fed Chairman Jerome Powell. The US central bank is widely expected to raise interest rates by 25 basis points, CME’s Videowatch showed.