Gold prices flat as investors await Fed rate decision

GOLD prices were flat on Tuesday (Jan 31), as market participants held back from making large bets ahead of the US Federal Reserve policy decision.

Spot gold held its ground at US$1,922.26 per ounce, as of 0032 GMT. US gold futures were down 0.1 per cent at US$1,921.40.

Traders mostly expect the US central bank to scale back rate hikes to 25 basis points (bps) at its two-day policy meeting that ends on Wednesday.

Low interest-rate environment decreases the opportunity cost of holding non-yielding bullion.

Investors are pricing in a 50-bps rate hike from the Bank of England (BOE) and the European Central Bank (ECB), which also have policy meetings this week.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 917.05 tonnes on Monday.

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Gold steady, spotlight on Fed rate-hike meeting outcome

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Spot silver lost 0.2 per cent to US$23.56 per ounce, platinum was steady at US$1,009.04, and palladium dipped 0.2 per cent to US$1,635.48. REUTERS