Gold prices slip as dollar firms ahead of US Fed rate decision
The Fed is expected to raise rates with investors looking for clues on policy outlook
London — Gold prices fell on Wednesday as the dollar strengthened ahead of the results of a US Federal Reserve meeting later in the day that is expected to raise US interest rates and hint at the outlook for future rate increases. Gold is sensitive to higher interest rates because they tend to boost the dollar, making gold more expensive for buyers with other currencies. They also push up US bond yields, reducing the attraction of non-yielding bullion. A Fed rate hike — the third this year — in an announcement at 6pm GMT is anticipated and is therefore unlikely to shift gold prices, said FOREX.com analyst Fawad Razaqzada. Markets will, instead, be looking to the Fed’s economic and interest-rate projections and a news conference by Fed chair Jerome Powell for something to move gold from its recent trading range of $1,190 to $1,210 an ounce. “If the Fed appears more dovish than expected we may see a break-out for gold,” Razaqzada said, adding that without a surprise, gold is unlikely ...
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