London — Gold hovered at slightly firmer levels on Wednesday as investors kept to the sidelines, confident that the US central bank would raise interest rates but unsure about what guidance it would give for next year. Bullion was supported by a softer dollar ahead of a US Federal Reserve announcement later on Wednesday that markets overwhelmingly expect to detail a quarter-point rate increase. "Gold is in no-man’s land today, waiting for more insight from the Federal Reserve," said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan. "In theory the Fed might surprise on the hawkish side, but the dollar has risen to a level that already incorporates another two hikes. So it’s pretty messy, the dollar is ruining the Fed’s plan." Spot gold was up 0.4% at $1,162.46 an ounce by 3pm GMT and US gold futures added 0.5% to $1,165. The Fed is due to release its latest policy and interest rate statement at 7pm GMT, with new forecasts assessing whether the economic outlook has ch...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.