Gold inches down as dollar firms; US Fed in focus

Spot gold was down 0.1 percent at $1,200.18, as of 0057 GMT.

The EQUICOM

Gold prices nudged down early Wednesday on a firmer dollar, as investors waited for details of the US Federal Reserve’s two-day meeting that should give clues whether policymakers will raise interest rates for the third time this year.

FUNDAMENTALS

Spot gold was down 0.1 percent at $1,200.18, as of 0057 GMT. US gold futures little changed at $1,204.6 an ounce.

Investors await details from the two-day Federal Reserve meeting that began on Tuesday, with the US central bank expected to raise benchmark interest rates and shed light on the path for future rate hikes.

Higher US interest rates typically pressure gold, since it costs to store and insure, but does not pay interest.

US consumer confidence surged to an 18-year high in September as households grew more upbeat about the labour market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China.

US President Donald Trump’s top trade official said on Tuesday that changing China’s economic policies to become more market-oriented “is not going to be easy” even with tariffs now in place on $250 billion worth of Chinese goods.

Although gold is generally considered to be a safe-haven asset, the months-long trade rift between Washington and Beijing has instead prompted investors to buy US dollars in the belief that the United States has less to lose from the dispute.

You can also Join The Equicom for more Trading Trials and Recommendations!