Gold pinned near key US$1,800 level ahead of Fed policy decision

[BENGALURU] Gold prices were flat on Wednesday, holding near the key psychological level of US$1,800 per ounce, as investors await the US Federal Reserve's meeting for hints on policy tapering plans.

Spot gold was flat at US$1,798.75 per ounce by 1.06am GMT.

US gold futures fell 0.1 per cent to US$1,798.20 per ounce.

Fed's policy statement is due at 6pm GMT later in the day followed by a news conference by chairman Jerome Powell.

Investors will look for cues on when the central bank will begin to taper its monetary support.

US consumer confidence inched up to a 17-month high in July, with households' spending plans rising even as concerns about higher inflation lingered, suggesting the economy maintained its strong growth early in the third quarter.

The International Monetary Fund on Tuesday maintained its 6 per cent global growth forecast for 2021, upgrading its outlook for the United States and other wealthy economies but cutting estimates for developing countries struggling with surging Covid-19 infections.

The US dollar held steady below its 3-1/2-month peak scaled last week.

Silver was flat at US$24.67 per ounce, having hit its lowest level in nearly four months at US$24.46 on Tuesday.

Palladium fell 0.1 per cent to US$2,605.01 per ounce, while platinum rose 0.22 per cent to US$1,052.93.

REUTERS