Gold stable amid anticipation of US Fed’s interest rate decision

Gold prices traded in a narrow range on Wednesday as investors awaited the Federal Reserve’s policy decision later in the day after lower-than-expected inflation data raised expectations for a moderate path to hike interest rates.

There was little change in the price of gold in spot transactions, and it settled at 1811.06 dollars an ounce (an ounce), by 0706 GMT, after it reached the highest level in more than five months yesterday, Tuesday, as it boosted a less than expected rise in prices. US consumers bet on a slower rate hike. US gold futures fell 0.1 percent to $1,823.40.

According to “Reuters”, Ajay Kedia, a manager at Kedia Commodities in Mumbai, said that lower US inflation data led to the weakness of the dollar and the rise of gold in the last session, but the price movement of the yellow metal will be quiet at the present time as the market awaits the decision of the Federal Reserve Board.

He added, “Gold could reach $1,832 if it appears that the US central bank is inclined towards calming the pace of interest rate hikes. However, there is strong resistance at the $1820 level, and prices will likely trade around this range for the rest of the year.”

Market focus now shifts to the Fed’s decision due at 1900 GMT. It is widely expected that the Bank will raise interest rates by 50 basis points at its last meeting this year

Gold is known as a hedge against inflation, but high interest rates tend to weaken its attractiveness because it increases the opportunity cost of holding non-returnable metal.

As for other precious metals, silver rose in spot transactions by 0.3 percent to $ 23.80 an ounce, and platinum rose 0.2 percent to $ 1034.51, while palladium fell 0.1 percent to $ 1927.26.