Gold backs off two-week high ahead of Fed decisions

Economies.com
2023-09-20 08:15AM UTC

Gold prices fell in European trade on Wednesday, extending losses for the second day and moving away from two-week highs on active profit-taking while the dollar powers up against a basket of major rivals.

 

Dollar's gains come ahead of the Federal Reserve's policy decisions, expected to maintain interest rates unchanged but will provide important clues on the likely policy decisions ahead.

 

Gold Prices Today

 

Gold prices fell 0.2% to $1,928 an ounce, with a session-high at $1,932, after losing 0.2% yesterday, the first loss in four days, away from a two-week high at $1,937. 

 

US Dollar

 

The dollar index rose 0.1% on Wednesday for the second session against a basket of major rivals, pressuring dollar-denominated gold futures.

 

The Fed

 

Advertistment

The Federal Reserve will wrap up its two-day policy meeting today, fully expected to maintain interest rates unchanged at 5.5%. 

 

The meeting will provide important clues on the future steps of the Fed, and whether it'll raise interest rates again in November. 

 

US Rates

 

Pricing for a 0.25% interest rate hike by the Federal Reserve this week stands at just 1%.

 

Pricing for a 0.25% Fed interest rate hike in November stands at a stronger 30%. 

 

The SPDR

 

Gold holdings at the SPDR Gold Trust fell 1.44 tonnes yesterday to a total of 878.83 tonnes, the lowest since January 2020.

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