Investing.com – Gold prices held onto gains on Wednesday, as the U.S. dollar shrugged off upbeat U.S. employment data and remained on the backfoot ahead of the Federal Reserve’s highly-anticipated policy decision.
Comex were up 0.62% at $1,343.70 a troy ounce by 08:40 a.m. ET (12:40 GMT).
ADP payrolls processing firm reported that the private sector created in January, beating expectations for a 186,000 rise.
But the greenback remained under pressure ahead of the Fed’s monetary due later Wednesday, with hopes the central bank will give more hints on the pace of future rate hikes.
The U.S. dollar also moved lower following U.S. President Donald Trump’s first State of the Union address late Tuesday.
Amid positive comments on what the U.S. President described as a “New American Moment” characterized by prosperity, rebuilding and cooperation, Donald Trump also underlined the need to end participation in large, multilateral treaties, as well as in unfair trade practices by other nations.
Trump also urged Congress to pass legislation to stimulate at least $1.5 trillion in new infrastructure spending.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.37% at 88.69, not very far from last week’s three-year lows of 88.25.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Elsewhere on the Comex, gained 1.04% to $17.24 a troy ounce.
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Source: Investing.com
