Gold rebounds on bargain hunting ahead of Fed verdict
The metal prices have climbed about 52% year-to-date
[BENGALURU] Gold prices edged higher on Wednesday (Oct 29) as bargain hunters stepped in after bullion dropped to a three-week low in the previous session, with investors now awaiting the US Federal Reserve’s rate decision later in the day.
Spot gold was up 0.7 per cent at US$3,977.49 per ounce as at 9.14 am after dropping to its lowest since Oct 7 on Tuesday.
US gold futures for December delivery rose 0.2 per cent to US$3,991.70 per ounce.
The Fed is widely expected to cut interest rate at the end of its policy meeting on the day, and investors are watching out for any forward-looking language from Fed chair Jerome Powell.
Meanwhile, the European Central Bank is expected to leave rates unchanged at its policy meeting on Thursday.
On the trade front, focus will be on any developments in talks between Washington and Beijing ahead of US President Donald Trump and his Chinese counterpart, Xi Jinping’s, meeting in South Korea on Thursday.
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Non-yielding gold thrives in a low-interest-rate environment and during economic uncertainties.
Gold prices have climbed about 52 per cent year-to-date, reaching an all-time peak of US$4,381.21 on Oct 20, bolstered by geopolitical and economic uncertainties, rate-cut bets and sustained central bank buying.
Meanwhile, the US dollar hovered near a one-week low versus major peers ahead of a much-anticipated Fed rate cut.
US private payrolls increased by an average of 14,250 jobs in the four weeks ending Oct 11, per the ADP National Employment Report’s inaugural weekly preliminary estimate.
Elsewhere, spot silver gained 0.7 per cent to US$47.36 per ounce, platinum rose 0.4 per cent to US$1,593 and palladium climbed 1.7 per cent to US$1,417.22. REUTERS
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