adminMANILA. — Gold steadied at just below $1 100 per ounce yesterday, trading not far from a five-and-a-half-year low, as investors awaited the outcome of the US Federal Reserve’s meeting for more clues on the timing of this year’s interest rate increase. Gold has been stuck in narrow ranges this week ahead of the conclusion of the Fed’s policy meeting.
Policy makers are expected to send more signals to the market that a US interest rate increase is certain this year as the economy recovers.
That rate hike, the first in nearly a decade, could happen as early as September, analysts say, suggesting more downside risk for noninterest-yielding gold.
“We still remain somewhat cautious about gold over the short-term, and suspect that the dollar could start to push higher over the balance of the week, possibly triggered by yesterday’s upbeat Fed policy statement,” INTL FCStone analyst Edward Meir said.
“We also do not see any imminent upside price drivers for gold at the moment, with physical, investor and fund demand all being rather uninspiring.” — Reuters.
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