Gold inched down on Wednesday after investors developed more appetite for riskier equities before the US Federal Reserve's monetary policy decision due later in the day. Spot gold was down 0.1 percent at $1,282.46 per ounce at 0954 GMT, while US gold futures slipped 0.1 percent to $1,284.20 an ounce.
"The pick up we saw in stock markets overnight is limiting demand in the gold market," said Ole Hansen, commodity strategist at Saxo Bank. "Gold is range bound and there no major trigger right now to move higher." Global equities were higher on Wednesday, extending the global equity market rally into a fifth month as investors cheered Apple's strong results.
Major US indexes gained overnight, after US President Donald Trump agreed with Democratic leaders to spend $2 trillion on infrastructure.
"Gold is more focused on what equity markets are doing and if equities continue higher gold will trade lower despite a weaker dollar," said Bob Haberkorn, senior market strategist at RJO Futures.
The dollar slipped 0.1 percent to its lowest in a week against key rivals, weakening for the fourth straight session, after posting its biggest daily percentage decline in more than a month on Tuesday.
A dip in the US currency makes dollar-denominated gold cheaper for investors holding other currencies.
Investors are awaiting the end of a two-day meeting by the US Federal Open Market Committee (FOMC), after the central bank ended its three-year policy tightening drive last month, ditching projections for any interest rate hikes this year.
"The market is predominantly looking for no change from the Fed. The key could be the wording of the statement, for any moves away from the dovish tone from the last time," Saxo Bank's Hansen said.
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