Gold hovers above $2,000 ahead of Fed’s decision

Gold prices hovered above the $2,000 level today, Wednesday, as investors await the Federal Reserve (US Central Bank) decision on interest rates, to be issued later today, Wednesday.

According to Reuters, gold settled in spot transactions at $2016.29 an ounce by 0140 GMT, after rising by more than one percent in the previous session.

US gold futures rose 0.1 percent to $ 2,026.10

The Federal Reserve’s interest rate decision is scheduled to be issued at 1800 GMT, amid broad expectations that it will raise it by 25 basis points.

Gold is usually seen as a hedge in times of increasing inflation and economic turmoil, but the high interest reduces the attractiveness of the metal, which does not generate returns.

As for other precious metals, silver fell in spot transactions by 0.2 percent to $25.33 an ounce, platinum fell 0.4 percent to $1061.53, while palladium increased 0.4 percent to $1434.62.