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Gold prices edged lower on Wednesday, but remained mired in a range between $1,700 and $1,750, as investors awaited the Federal Reserve’s latest interest-rate-hike announcement.
Price action
-
Gold
GC00,
-0.34% GCQ22,
-0.34%
for August delivery lost $4.50, or 0.3%, to $1,713.20 an ounce. -
Silver
SIU22,
-0.62% SI00,
-0.62%
for September delivery traded at $18.515 an ounce, down 2 cents, or 0.1%. -
Palladium prices for September
PAU22,
+0.66%
gained $13.30, or 0.7%, to $2,024.50 an ounce, while platinum prices
PLV22,
+0.88%
for October delivery gained $5.30, or 0.6%, to $869.70 an ounce. -
September copper
HGU22,
+0.72%
advanced by a penny, or 0.3%, to $3.3945 per pound.
What analysts are saying
The near-term outlook for gold will likely be determined by the Federal Reserve, and whether or not their announcement on Wednesday is perceived as hawkish or dovish.
“Any kind of dovish pivot from the Fed, even a move to data dependency going forward, could be a positive outcome for gold, while a 1% hike or strong indication towards 75 basis points in September could see $1,700 come under strain,” said Craig Erlam, senior market analyst at OANDA, in a market update.
Of course, that “may be oversimplifying things as the decisions always carry plenty of caveats that could impact how it is interpreted and therefore the impact on the markets,” he said. “It all depends on how seriously the FOMC views the economic risks in the months ahead and the range of options it wants to leave on the table.”
Meanwhile, Marc Chandler, chief market strategist at Bannockburn Global Forex, pointed out that gold is putting in “lower highs” for a third day after weakening over the past two sessions.
10-year Treasury yields
TMUBMUSD10Y,
were modestly lower, while the ICE U.S. Dollar Index
DXY,
a measure of the greenback’s strength against a basket of major currencies, fell 0.2%.
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