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Gold prices flat as investors cautious ahead of Fed decision

Gold prices flat as investors cautious ahead of Fed decision

Spot Gold changed slightly to $ 1,920.71 an ounce by GMT, hitting a low of $ 1,906 since March 1 last session.

US Treasury yields hit their highest level in more than two and a half years on Tuesday, ahead of the Fed’s expected announcement of the first interest rate hike in three years on Wednesday. US Treasury yields hit their highest level in more than two and a half years on Tuesday, ahead of the Fed’s expected announcement of the first interest rate hike in three years on Wednesday.

Gold prices were flat on Wednesday, close to a two-week low in the previous session, as investors refrained from making big bets before the Federal Reserve decided to raise interest rates to control rising inflation.
Fundamentals


* Spot Gold changed slightly to $ 1,920.71 an ounce by GMT, hitting a low of $ 1,906 since March 1 last session. US gold futures fell 0.3% to $ 1,923.90.
* US Treasury yields hit their highest level in more than two and a half years on Tuesday, ahead of the Fed’s expected announcement of the first interest rate hike in three years on Wednesday.
* Gold is highly sensitive to rising US interest rates, which increases the cost of holding non-performing bullion.
* US President Joe Biden will visit Europe for the first time since the invasion of Ukraine next week to discuss the crisis with NATO allies, the White House said Tuesday, adding that the number of refugees in further Russian airstrikes has reached 3 million.
* Russia’s central bank says it will suspend buying gold from banks from Tuesday to meet increased demand for the metal from households, the latest attempt to weather the storm in Russian markets in the face of Western sanctions.
* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 1,061.8 tonnes on Tuesday.
* Palladium, used by automakers in catalyst converters to prevent emissions, rose 0.5% to $ 2,436.98 an ounce, but was near a two-week low on Monday on fears of a supply shortfall.
* Spot silver rose 0.2% to $ 24.91 per ounce, while platinum rose 0.1% to $ 986.82.

Published on: Mar 16, 2022, 8:38 AM IST
Posted by: Sana Ali, Mar 16, 2022, 8:36 AM IST