Gold flat as global markets enter holding pattern ahead of Federal Reserve decision
Bengaluru — Gold prices were steady on Wednesday as investors awaited a statement from the Federal Reserve for clues on the outlook for the US central bank’s monetary policy. "Markets are certainly a little bit cautious ahead of the Fed meeting and that’s probably hindering investor appetite," said ANZ analyst Daniel Hynes. The Fed concludes a two-day meeting later on Wednesday, and is widely expected to keep interest rates unchanged. "I think the market will be looking for any comments around inflation," Hynes said. Spot gold fell 0.1% to $1,246.94 an ounce at 3.27am GMT. US gold futures for August delivery fell 0.5% to $1,246.30/oz. "At this stage, we would rather be neutral on gold as Fed wording could throw the market off (in either direction)," said INTL FCStone analyst Edward Meir. Higher interest rates would push bond yields up and probably boost the dollar. Higher yields increase the opportunity cost of holding non-interest-bearing gold, while a stronger dollar makes bullion...
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