Gold Prices Hold onto Gains Ahead of FOMC Statement

Investing.com – Gold prices held onto gains on Wednesday, as sentiment on the greenback remained vulnerable ahead of the Federal Reserve monetary due later in the day.

Comex were up 0.85% at $1,322.7 a troy ounce by 09:30 a.m. ET (13:30 GMT), off the previous session’s two-week lows of $1,306.8.

The greenback weakened although the Fed is widely expected to raise rates by a quarter point at the conclusion of its two-day policy meeting on Wednesday, but investors will mostly be focusing on any indications as to the pace of monetary policy tightening for the remainder of the year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.41% at 89.64.

Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.

Investors were also cautious amid ongoing fears of a potential trade war. The White House is expected to unveil up to on Chinese imports by Friday, targeting technology, telecommunications and intellectual property.

Elsewhere on the Comex, gained 0.59% $16.28 a troy ounce.

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