Gold steady, spotlight on Fed rate-hike meeting outcome

GOLD prices held steady in early Asian hours on Monday (Jan 30), with investors awaiting the US Federal Reserve’s rate-hike verdict due this week.

Spot gold was little changed at US$1,928.32 per ounce, as of 0013 GMT. US gold futures were down 0.1 per cent at US$1,928.70.

Traders are eyeing the Fed’s policy meeting scheduled on Jan 31-Feb 1. The market broadly expects the US central bank to scale back rate hikes to 25 basis points (bps) from 50 bps announced in December.

Gold, which pays no interest, tends to benefit when interest rates are low as it reduces the opportunity cost of holding bullion.

On Friday, data showed that US consumer spending fell in December, while inflation continued to subside, which could give the Fed room to further slow the pace of its rate hikes.

Physical gold dealers in India offered the steepest discounts in 10 months last week to lure customers, as a sharp rally in local prices squeezed demand in the world’s second-biggest bullion consumer.

SEE ALSO

Gold little changed as traders focus on US inflation data

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Spot silver gained 0.3 per cent to US$23.63 per ounce, platinum rose 0.2 per cent to US$1,014.08, and palladium climbed 0.8 per cent to US$1,631.64. REUTERS