Gold prices rose to a two-week high on Tuesday as the dollar fell from a six-month high before the start of the Federal Reserve’s monetary policy meeting later today, and as markets awaited a new set of economic forecasts from the US central bank.
Gold prices in spot transactions stabilized at 1933.31 dollars per ounce after earlier in the session reaching its highest level since the fifth of September, and the prices of US gold futures rose 0.1 percent to 1955 dollars per ounce.
“Any expectations from the Federal Reserve that it will raise interest rates by more than investors have bet before could have the effect of pushing gold prices lower,”said Edward Gardner, commodity economist at Capital Economics.
The pace of growth, low inflation and the solidity of the labor market paved the way for updated forecasts from Federal Reserve officials that will most likely reflect their growing belief in the prospects for a soft landing of the economy while keeping another possible interest rate hike on the table.
The dollar hovered below last week’s six-month high, making gold cheaper for overseas buyers as the Bank of England and the Bank of Japan await monetary policy decisions this week.
