Gold held near a three-week high as investors awaited guidance from the Federal Reserve on when interest rates may rise amid speculation that policy makers may push back the start of higher borrowing costs.
Bullion for immediate delivery traded at $1,210.52 an ounce at 11 a.m. in Singapore from $1,212.17 on Tuesday, according to Bloomberg generic pricing. The metal climbed for a second day on April 28, gaining to $1,215.16, the highest since April 7. Gold in Shanghai rose to a two-week high.
The Federal Open Market Committee will issue a policy statement at the end of a two-day meeting on Wednesday as recent signs of uneven U.S. economic growth damped expectations that rates will rise soon. Economists surveyed by Bloomberg News expect that the Fed’s long-awaited liftoff on the benchmark rate won’t happen until September. The dollar dropped for a fifth day on Tuesday to cap the longest losing run since July.
“Focus will be on the FOMC meeting and weakness in the U.S. dollar, which should support commodities, particularly gold,” Australia & New Zealand Banking Group Ltd. wrote in a note. “Greater volatility is expected for gold.”
Gold for June delivery declined 0.3 percent to $1,210 an ounce on the Comex. Bullion of 99.99 percent purity climbed as much as 0.6 percent to 242 yuan a gram ($1,213.08 an ounce) on the Shanghai Gold Exchange, the highest level since April 13.
Silver for immediate delivery fell 0.4 percent to $16.5726 an ounce after two days of gains. Platinum was 0.1 percent lower at $1,156.38 an ounce, while palladium lost 0.1 percent to $776.85 an ounce.
Source : Bloomberg