Spot Gold Eases On Profit-Booking Ahead Of US Central Bank Decision; Dollar Halts Slide
Gold retreated on Wednesday as the dollar briefly halted its slide and investors booked profits after prices hit a record high in the last session, ahead of the Federal Reserve's monetary policy decision. Spot gold was down 0.4 per cent at $1,950.64 per ounce by 0332 GMT (9:02 am in India). Prices hit an all-time high of $1,980.57 per ounce on Tuesday. USÂ gold futures rose 0.1 per cent to $1,947.10 per barrel.
Gold is closely following moves in the dollar, which has halted its fall, said DailyFx currency strategist Ilya Spivak.
"As we get closer to the Fed announcement and the event risk, the market will get a bit more wary," Mr Spivak added.
The dollar index was little changed at 93.683, having touched its lowest level since June 2018 this week. A weaker dollar, also considered a rival safe haven, makes gold cheaper for holders of others currencies.
Coronavirus cases continued to surge in the US, and stood at over 16.6 million globally.
Its intensifying spread and an escalation in US-China tensions have dented hopes of quick economic recovery, and have been driving inflows to safe-haven assets like gold, which has risen more than 28 per cent so far this year.
The US central bank will publish its interest rate decision at 1800 GMT (11:30 pm in India), widely expected to keep rates unchanged, following which Chair Jerome Powell is scheduled to hold a press conference.
"I expect the Fed to maintain its uber-dovish tone and this will support precious metals prices," said Jeffrey Halley, a senior market analyst at OANDA.
Gold tends to gain when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion. It's also considered a hedge against inflation and currency debasement as central bank pump out stimulus.
Meanwhile, Republicans in the White House and the US Congress struggled to reach a deal over a $1 trillion aid plan.
Elsewhere, silver dropped 1.6 per cent to $24.19 per ounce, platinum fell 1.3 per cent to $935.62 and palladium slipped 1.2 per cent to $2,255.18.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
