Gold traded flat to slightly lower on Wednesday ahead of the Federal Reserve’s rate decision later in the day and the Bank of England’s monetary policy announcement due on Thursday.
Spot gold was little changed at $1,982.84 per ounce while U.S. gold futures were down 0.2 percent at $1,991.35.
Gold is in consolidation mode after fears over the Middle East conflict boosted the safe-haven asset’s prices above $2,000 an ounce last month.
Traders watched the latest developments in the Middle East after Israeli airstrikes hit a densely populated refugee camp in the Gaza Strip on Tuesday, killing at least 50 Palestinians and a Hamas commander.
Israel prime minister Benjamin Netanyahu said the country’s war against Hamas will continue despite “painful losses”.
Market participants also looked ahead to the Federal Reserve’s rate decision later in the day.
The U.S. central bank is widely expected to leave interest rates unchanged, but traders will pay close attention to the accompanying statement for clues about the outlook for rates.
At the press conference following the rate decision, Chair Jerome Powell may reiterate that the Fed is ‘proceeding carefully’ and another rate hike is still an option based on incoming data.
U.S. reports on manufacturing activity, construction spending and job openings will also be in the spotlight as recession fears swirl.
The Bank of England will make its monetary policy announcement on Thursday, with economists expecting no change in interest rates.
Gold Marginally Lower Ahead Of Fed Decision
2023-11-01 10:17:19
