Gold prices steady with investor focus on Fed meeting

Gold prices traded in a tight range on Tuesday, as investors maintained a cautious stance ahead of this week’s Federal Reserve policy meeting, where the US central bank is likely to raise interest rates. to control high inflation.


* Spot gold held steady at $1,676.80 per ounce, as of 0037 GMT. US gold futures were up 0.5% at $1,686.70.

* The US Fed, at the conclusion of its two-day policy meeting on Wednesday, is expected to raise rates by 75 basis points, with markets even seeing a 19% chance of a 100 bps rise.

* The high interest rate environment increases the opportunity cost of holding unprofitable bullion.

* Gold prices weakened on Monday, hovering at a 29-month low on Friday, as the US dollar and Treasury Yields strengthened on expectations of a strong Fed rate hike.

* Although the dollar index is down 0.3%, it’s not far from a 20-year high. A stronger greenback makes bullion more expensive for holders of other currencies.

* Yields on the benchmark 10-year Treasury note, held at their highest level in more than a decade, rose on Monday.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.30% to 957.95 tonnes on Monday from 960.85 tonnes on Friday.

* Spot silver lost 0.7% to $19.48 an ounce. Platinum fell 0.1% to $918.29 and palladium fell 1.5% to $2,191.75.


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