Investing.com – Gold prices rose to a nearly one-week high amid dollar weakness despite the prospect of a more hawkish Federal Reserve outcome as the central bank is widely expected to hike rates.
for April delivery on the Comex division of the New York Mercantile Exchange rose by $9.90, or 0.75%, to $1,321.80 a troy ounce.
With just hours to go until the Federal Reserve reveals – at 2 p.m. ET – what many investors expect will be a , gold prices edged higher as the dollar fell on profit taking.
The major point of deliberation, the past few days, leading up to the Fed decision has been centred on whether the central bank will stick to its current three rate-hike projections for 2018 or turn hawkish and add a fourth rate.
Wells Fargo said it forecasts four rate hikes in 2018, citing higher inflation, rising inflation expectations and a solid employment outlook as factors supporting its hakiwsh outlook on rates.
While rising interest rates tend to boost the dollar, leading to a downturn in gold prices, some suggested however, that gold prices could continue to garner demand amid rising geopolitical and financial market uncertainties.
“Financial market and geopolitical uncertainties could keep gold prices at relatively high levels despite the strong economic growth that should favor interest rate hikes,” Desjardins said.
In other precious metal trade, rose 1.36% to $16.44 a troy ounce, while gained 0.52% to $950.20 an ounce.
rose 0.76% to $3.06, while fell 1.16% to $2.65
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Source: Investing.com
