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Saturday, June 10, 2023

Gold Down, Investors Await Fed Policy Decision

Gold Down, Investors Await Fed Policy Decision
© Reuters.

By Gina Lee

Investing.com – Gold was down on Wednesday morning in Asia, with the focus squarely on the latest U.S. Federal Reserve policy decision. Investors will assess the U.S. central bank’s plans to combat rising inflation and calm worries about the economic recovery from COVID-19.

Gold futures were down 0.30% to $1,784.05 by 11:29 PM ET (3:29 AM GMT).

The Fed will hand down its decision later in the day, where it is widely expected to reveal its asset tapering timeline. The central bank is likely to begin paring its monthly asset purchases by $15 billion each month until ending them by mid-2022, but the timeline for interest rate hikes remains uncertain.

The Bank of England will also hand down its decision on Thursday. However, the end of the U.K.’s furlough program did not lead to a surge in new job-seekers, with unemployment is unlikely to rise sharply and bolster the case for an interest rate hike, according to data.

In Japan, policymakers on Tuesday reaffirmed the Bank of Japan (BOJ)’s commitment to its 2% inflation target in a meeting between BOJ governor Haruhiko Kuroda, economy minister Daishiro Yamagiwa and finance minister Shunichi Suzuki.

On the data front, China’s Caixin services purchasing managers index released earlier in the day, was 53.8 for October. Although slightly higher than the 53.4 recorded during the previous month and buoyed by robust demand, rising inflation remains a concern for the year ahead.

In the U.S., the ISM non-manufacturing PMI is due on Wednesday. Trade data, including exports and imports, will follow a day later and the latest U.S. jobs data, including non-farm payrolls, will be released on Friday.

In other precious metals, silver edged down 0.2%. Platinum was little changed at $1,037.49, while palladium gained 0.4%.

Source: Investing.com

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