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Gold edges lower as investors await Fed’s policy statement
Gold prices ticked lower on Wednesday trading session, amid decreasing physical demand as investors warily awaits the outcome of the much anticipated Federal Reserve policy meeting later in the day.
Gold is currently trading in a narrow range with markets shut for Labor Day holiday, ahead of Fed’s rate decision to show whether they think that current economic conditions are good enough to stop the ongoing easing or not.
- Spot gold gained 0.15 percent or 2.26 points to trade at 1,474.19
Moving to others metals:
- Silver rose 0.29% to trade around 24.25
- Platinum edged higher by 0.20% to 1,507.00
- Palladium inched 0.14% down to 697.60
Traders do not expect much change in Fed`s policy, but will keep close watch on the meeting for clues over the next period, and the future of the Fed’s stimulus program, especially after that GDP growth in the first quarter fell short of forecasts, coming in at 2.5% versus the consensus forecast of 3.3%.
Most of the FOMC members noted earlier that quantitative easing will probably end this year. If the Fed signaled an earlier-than-expected end to the asset-buying program, gold would suffer as a result.
Meanwhile, U.S. non-farm payrolls is due to be released on Friday, which will show an increase of 145,000 jobs in April, while unemployment will remain at 7.6%, according to median estimates.
The dollar came under pressure earlier on expectations the Fed will continue its pledge to go on with stimulus measures to bolster the economy and the fragile labor market following weaker-than-expected growth data.
As of (09:34 GMT+3) on Wednesday, the dollar index fell to trade around 81.76 after opening at 81.78; USDIX hit a high of 81.78 and a low of 81.86.
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