Gold steady as investors brace for Fed policy meeting
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GOLD prices were flat on Monday (Oct 31), after declining about 1.3 per cent in the previous session, as investors cautiously awaited the US Federal Reserve’s policy meeting for cues on its rate-hike path.
Spot gold was little changed at US$1,642.59 per ounce by 0046 GMT, while US gold futures were up 0.1 per cent at US$1,645.90.
The dollar index was flat, while the benchmark 10-year Treasury yields held above the 4 per cent threshold.
US consumer spending rose more than expected in September while underlying inflation pressures continued to bubble, keeping the Fed on track to hike interest rates by another three-quarters of a percentage point at Nov 1-2 meet.
US rate hikes increase the opportunity cost of holding zero-yielding bullion while boosting the dollar, in which it is priced.
The European Central Bank (ECB) could hike its interest rates by 75 basis points again at its next policy meeting in December, ECB governing council member Klaas Knot said on Sunday.
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The festival of Diwali sparked fresh demand for physical gold in India last week, while consumers in top hub China were still subject to elevated premiums as supply remained low.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.28 per cent to 922.59 tonnes on Friday.
Spot silver fell 0.3 per cent to US$19.17 per ounce, platinum eased 0.2 per cent to US$942.60 and palladium rose 0.7 per cent to US$1,914.06. REUTERS
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