Gold was steady on Wednesday morning in London ahead of the outcome of the US Federal Reserve meeting – while interest rates are largely expected to stay unchanged, the meeting will be closely watched for direction.
– The spot gold price was last at $1,318.95/1,319.35 per ounce, little changed from the previous close. Trade has ranged from $1,315.95 to $1,320.55 so far.
– “Leading into today’s FOMC announcement, we are expecting the yellow metal to continue within its recent narrow range ($1,310-1,325), while should the FOMC turn marginally more hawkish tonight we may see the metal initially test toward $1,300 before consolidating over the short term for a further run higher,” MKS said.
– While most market participants do not see the Fed raising rates this time, encouraging US data has underscored expectations that the FOMC will be more upbeat on its assessment of economic activity, ANZ said. The market is also watching out for the Bank of Japan (BoJ) meeting on July 28.
– Silver was little changed at $19.565/19.620 per ounce, platinum climbed $7 to $1,091/1096 and palladium edged $2 higher to $686/691. Investors are keeping an eye on the wage negotiations in South Africa.
– HSBC analyst James Steel believes the PGMs can continue to edge higher unless gold weakens dramatically and pulls them down in sympathy, he said.
(Editing by Mark Shaw)
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Source: Bullion Desk News
