Gold in narrow range as investors focus on Fed decision

Gold moved within a narrow price range on Wednesday, as investors refrained from making any big bets ahead of the US Federal Reserve’s monetary policy decision scheduled for later on Wednesday.

According to Reuters, the spot gold price fell 0.1 percent to $1925.09 an ounce by 0237 GMT. US gold futures fell 0.3 percent to $1,940.50.

Matt Simpson, chief market analyst at City Index, said that gold will remain above the $1,900 level before the board meeting, and the board’s message must be heard to know the possible direction of the metal later.

The council’s decision is scheduled for 1900 GMT, followed by a press conference by its chair Jerome Powell at 1930 GMT. It is widely expected that the US central bank will reduce the pace of raising interest rates to 25 basis points, compared to 50 basis points in December.

Low interest rates tend to be beneficial for gold, as it reduces the opportunity cost of owning the non-returnable metal.

As for other precious metals, spot silver fell 0.4 percent to $23.61 an ounce, platinum fell 0.3 percent to $1008.62, and palladium fell 0.1 percent to $1647.17.