Gold Eases From a Record High Before Long-Awaited Fed Pivot
Gold wavered ahead of the Federal Reserve's long-awaited pivot to lower borrowing costs.
Bullion traded near $2,570 an ounce, after falling 0.5% in the previous session. Traders expect the Fed to cut rates later Wednesday, though it's unclear whether the US central bank will opt for a quarter- or half-point reduction. Lower rates tend to benefit gold, which doesn't pay interest.
The precious metal would face a minor, near-term setback if the Fed cuts by just 25 basis points, Goldman Sachs Group Inc. said in a note. But it's still likely to rise to $2,700 an ounce by early next year, the bank said.
Gold has rallied by almost a quarter this year as the Fed moved closer to pivoting to monetary easing. Central-bank buying and strong haven demand due to conflicts in the Middle East and Ukraine have helped the advance, while interest from retail investors has also picked up.
Spot was up 0.1% at $2,571.76 an ounce as of 10:03 a.m. in New York, down from Monday's all-time high of $2,589.70. The Bloomberg Dollar Spot Index slipped 0.2%. Silver, platinum and palladium all declined.
Source: Bloomberg
