Gold nears 8-month peak ahead of Fed policy and US-China talks
Markets expect dollar to weaken, giving the yellow metal a possible further boost
Gold rose to near a more than eight-month peak on Wednesday, supported by a muted dollar as investors awaited the Federal Reserve’s policy decision and US-China trade talks later in the day. Spot gold was up 0.1% at $1,312.51 per ounce in early trade, after touching $1,315.93, its highest since May 14 2018 earlier in the session. US gold futures rose 0.2% to $1,311.50. “Gold is hesitating just as the dollar is pausing for breath... We have the Fed meeting later, and investors are wondering what the Fed is going to do with regards to the pace of balance sheet reduction,” said Fawad Razaqzada, an analyst with Forex.com. Markets expect Fed officials will reinforce their recent dovish stance given a stalemate on global trade, signs of a slowdown in the US economy, and waning business and consumer confidence. The Fed raised interest rates four times in 2018 . “If the tightening cycle is indeed coming to an end, as many believe, you can expect the dollar to weaken, which will be gold posi...
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