Gold Holds Gain as Investors Brace for Fed’s Policy Meeting
Gold held a small advance ahead of the Federal Reserve’s interest-rate decision later Wednesday, with officials set to provide crucial clues on the monetary policy outlook.
Bullion traded near $3,330 an ounce, following a 0.4% gain on Tuesday sparked by falling Treasury yields from a solid auction of seven-year notes.
US central bank policymakers are expected to hold rates steady, even as Fed Chair Jerome Powell remains under pressure from President Donald Trump to lower borrowing costs. Still, the resilience of the US economy has strengthened the case for the Fed to maintain current settings. Both lower Treasury yields and borrowing costs tend to benefit gold, as it doesn’t pay interest.
Traders will also be watching a slate of key indicators this week — from jobs and inflation to economic activity — to gauge how Fed officials may position themselves ahead of their September meeting, where a rate cut looks likely.
Trump’s tariff agenda and concerns about a global trade war have been a major catalyst for gold’s surge by more than a quarter this year, while geopolitical conflicts have also sparked haven demand. But traders appear to becoming increasingly immune to levy-negotiation developments, even with the president’s Aug. 1 tariff deadline fast approaching. The latest signs of progress between Washington and Beijing failed to meaningfully lift risk-on sentiment.
Spot gold was up 0.1% to $3,330.13 an ounce at 8:17 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, after gaining 1.4% during the previous four sessions. Silver and platinum were little changed, while palladium rose.
Source: Bloomberg
