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Gold prices stabilized on Wednesday as investors held off big bets ahead of a decision on the pace of monetary policy tightening at the US Federal Reserve meeting, while tensions surrounding Ukraine kept gold near a 10-week high hit in the previous session.
And gold settled in spot transactions at the price of $ 1847.11 an ounce by 0547 GMT, after hitting its highest level since November 19 on Tuesday.
US gold futures fell 0.2 percent to $1,848.30 an ounce.
The Federal Reserve’s two-day meeting concludes later on Wednesday and federal funds futures contracts have fully absorbed the impact of a quarter-point rate hike and three subsequent hikes during the year.
Although gold is a hedge against inflation and geopolitical risks, raising interest rates increases the opportunity cost of acquiring non-returnable gold.
On Tuesday, a senior International Monetary Fund official said that an expected US interest rate hike could derail the economic recovery in emerging Asian economies and keep pressure on policymakers to guard against the risk of capital flight.
US President Joe Biden has said he is considering personal sanctions against Russian President Vladimir Putin if Russia invades Ukraine. In contrast, Western leaders have stepped up military preparations and plan to protect Europe from any energy supply shock.
As for other precious metals, the price of silver in spot transactions fell 0.6 percent to $23.68 an ounce, palladium fell 0.7 percent to $2184.34 an ounce, and platinum settled at $1025.36 an ounce.
