Precious metals-gold is stable ahead of fed decision

by time news

For Arundhati Sarkar

Sep 22 (Reuters) – Gold prices stabilized on Wednesday as investors braced for the outcome of a Federal Reserve meeting and remarks by its chairman, Jerome Powell, on reducing his massive support for a battered economy. for the pandemic.

* At 1110 GMT, spot gold was little changed at $ 1,773.81 per ounce, while US gold futures were down 0.2% at $ 1,774.90.

* “Markets have already incorporated an increasingly aggressive outcome into their predictions and the nuances will be at (Powell’s) press conference,” StoneX analyst Rhona O’Connell said, adding that gold is also seeing “some coverage. Safe Haven Risk Report by Evergrande “.

* “(But) the flow of investment in general has been limited with the markets concentrating, even concentrating too much, on the FOMC,” O’Connell added.

* The Fed’s decision remains the focus and could determine the fate of the bullion in the short term, as a rise in interest rates in the United States would raise the opportunity cost of holding stocks of the non-interest bearing metal.

* The central bank’s policy statement after a two-day meeting will be at 1800 GMT. Fed interest rate projections for 2024 will also be offered for the first time.

* Investors are also on the lookout for Evergrande after the Chinese real estate developer said it would pay some interest on bonds that mature on Thursday.

* Silver was up 1.1% at $ 22.72 an ounce, while palladium was up 3.7% at $ 1,977.20. Platinum was up 1.7% at $ 969.50.

(Report by Arundhati Sarkar in Bengaluru; Edited in Spanish by Janisse Huambachano)

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