Gold edges higher ahead of key Fed rate verdict

GOLD prices ticked higher on Wednesday (Nov 2), supported by a pullback in the dollar, although investors were focused on the US Federal Reserve outlook on future pace of interest rate hikes as the central bank's policy meeting concludes later in the day.

Spot gold was up 0.2 per cent at US$1,650.13 per ounce, as of 0100 GMT, while US gold futures also gained 0.2 per cent to US$1,652.10.

The dollar index edged 0.1 per cent lower, making the greenback-priced gold less expensive for holders of other currencies.

US job openings unexpectedly rose in September, suggesting demand for labour remained strong, providing evidence that rapid interest rate hikes have yet to bite hard in the real economy.

Investors widely expect the Fed will raise its benchmark overnight interest rate by 75 basis points, the fourth such increase in a row.

Gold is highly sensitive to rising US interest rates, as that increase the opportunity cost of holding the non-yielding metal and boosts the dollar.

Global factory output weakened in October as widespread recession fears, high inflation and China's zero-Covid policy hurt demand, business surveys showed on Tuesday, adding to persistent supply disruptions and darkening recovery prospects.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 per cent to 919.12 tonnes on Tuesday from 920.57 tonnes on Monday.

Spot silver fell 0.1 per cent to US$19.63 per ounce, having hit a three-week peak on Tuesday. Platinum rose 0.4 per cent to US$946.18 and palladium was 0.5 per cent higher at US$1,889.47. REUTERS



BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to