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Gold Prices Rise Ahead of Fed’s Policy Statement

Gold futures were edging higher on Wednesday, with commodity investors positioning ahead of a Federal Reserve statement that is likely to prove mostly bullish for long-term metals investors.

Investors are expecting the Fed to indicate continued support even if the central bank isn’t expected to change interest rates Wednesday from a range between 0% and 0.25%. The Fed’s statement will come about a half-hour after metals settle on Comex.

Against that backdrop, December gold picked up $6.10, or 0.3%, at $1,972.40 an ounce, after rising 0.1% on Tuesday and marking the highest most-active contract settlement since Sept. 1, according to FactSet data.

Meanwhile, December silver rose 7 cents, or 0.2%, at $27.535, following a 0.4% climb in the previous session.

Precious metals experts, however, say that gold and silver could face some resistance if the Fed and other central banks significantly upgrade their projections for economic growth, which may weigh on metals.

“Traders are expecting that the Federal Reserve will upgrade its growth forecast,” wrote Chintan Karnani, analyst at New Delhi-based Insignia Consultants in a Wednesday research report.

“Gold needs to trade over $1983.70 (till tomorrow) to rise to $2024.10 and $2100.30,” he wrote.

Source: Marketwatch

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