Gold prices fell today, Wednesday, ahead of an expected and important decision by the Federal Reserve (the US central bank).
Investors are awaiting any signs of the US central bank’s plans to reduce stimulus measures related to the Corona virus pandemic, amid signs of rising inflation.
Gold prices today
And gold fell 0.4% to $ 1780.60 an ounce (an ounce) in spot transactions, by 0937 GMT.
US gold futures fell 0.4% to $1,782.10.
“Markets expect the Federal Reserve to announce the start of reducing stimulus from today and also absorb the rate hike next year, not only by the Federal Reserve but also by the European Central,” said Peter Fertig, analyst at Quantitative Commodity Research.
The Federal Reserve will announce its expected decision at 1400 GMT.
Markets are also awaiting the Bank of England’s meeting tomorrow, Thursday, after data showed that unemployment is not expected to have risen significantly, which reinforced expectations of a rate hike.
Gold prices ranged between limited losses and gains this week, and analysts said that the US central bank’s decision may be the event that pushes prices outside this limited range.
Precious metals prices today
As for other precious metals, silver rose in spot transactions 0.1% to $23.54 an ounce. Platinum rose 0.6 percent to $ 1044.27, and palladium rose 0.5 percent to $ 2021.71.
The dollar hovered near recent peaks against the euro and yen on Wednesday.
The dollar index settled little changed at 94.11, close to the 2021 peak of 94.563 recorded last month.
Against the euro, the dollar also settled at 1.1579, near the low of 1.1522 recorded in October, which was the strongest level for the dollar since July 2020.
The dollar traded at 113.94 yen, near a four-year high.
The Australian dollar fell 1.2% against the dollar on Tuesday and settled today at $0.7448. Its New Zealand counterpart also fell 1% but was supported today by strong employment data and hovered at $0.7134, up 0.3%.
The British pound fell to a two-week low of $1.3606.