Gold prices steady Ahead of Fed Meeting

Investors looking for clues from Fed’s meeting

Gold prices were on a steady note early on Wednesday as the investors’ appetite was hindered by the caution ahead of the awaited Federal Reserve’s meeting.  They are waiting for the clues on the upcoming Central Bank’s monetary policy.

Gold Statistics today

Spot Gold fell by 0.35% at 11:00 GMT. US Gold futures for delivery in August fell by 0.5 %. SPDR Gold Trust holdings fell by 1.3% on Tuesday. This Gold Trust is the largest exchanged traded fund backed by Gold.

US Treasury jumped high in nearly 3 months on Tuesday after the record highs hit by the Wall Street.

All eyes on Federal Reserve’s wording

All eyes are on the Federal Reserve’s wordings and this can throw the market off on any direction. If the interest rates go high, it would push the bonds yield up and likely boost the dollar.

Strong economic data from US weighed on Gold but was offset by a weaker outlook on inflation. Market experts say that if there is no change seen in Federal language in the meeting, we can see the demand for gold pushing up. This refers to the recent support to Gold due to recent political uncertainty in the United States.

Federal Reserve will conclude its two day meeting later on Wednesday and it is expected widely that they will keep the interest rates unchanged. Markets may be looking for comments on inflation.

Yaron Mazor is a senior analyst at SuperTraderTV.

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