Gold slightly higher as all eyes focus on looming FOMC decision

Gold prices are up a bit after hitting a three-week low overnight, while silver is slightly down after scoring a four-week low overnight. The marketplace is quieter just ahead of some important US economic data coming out today. February gold was last up $3.20 at $1,996.40. Gold is trading at 1,981.91 at the time of writing. March silver was last down $0.026 at $22.99 as the yield on the benchmark US Treasury 10-year note is presently fetching 4.187%.

The Labour Department’s report showed the Producer Price Index (PPI) for final demand rose 0.9% on an annual basis in November. Economists polled by Reuters had estimated a 1% advance.

Focus is also on the two-day Federal Open Market Committee (FOMC) monetary policy meeting of the Federal Reserve that began Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell.

The marketplace consensus is that the FOMC will leave US interest rates unchanged. However, it’s also expected the FOMC statement and Powell at his press conference will still lean hawkish by saying the inflation fight is not yet finished. Still, many market watchers expect the Fed to cut US interest rates by mid-year in 2024.

In other news, China’ annual economic conference produced no significant stimulus measures to boost the world’s second-largest economy. That put Asian investors in downbeat moods at mid-week.