Gold inches up ahead of Fed verdict, silver powers to fresh records above US$60
Gold inched higher on Wednesday as investors prepared to parse Federal Reserve chair Jerome Powell’s guidance on the day when the bank is expected to cut interest rates, while silver continued to push its record-breaking run above US$60 (RM247.25) an ounce.
Spot gold edged up 0.2% to US$4,215.61 per ounce as of 0309 GMT. US gold futures for February delivery rose 0.2% to US$4,244.70 per ounce.
Spot silver was up 0.6% at US$61.06/oz after hitting an all-time high of US$61.46 earlier in the session. It built on its Tuesday’s break above the US$60 threshold, driven by depleted inventories and firm industrial demand.
“What we’re seeing on spot gold is not much change, it’s still range-bound, and people are just looking at the Fed interest rates tonight, and whether there’ll be further news (on the monetary policy path),” GoldSilver Central MD Brian Lan said.
The two-day Federal Open Market Committee (FOMC) meeting concludes with a rate decision at 1900 GMT on Wednesday, followed by Powell’s press conference at 1930 GMT. Investors are currently pricing in an 88.6% chance of a 25-basis-point cut.
White House economic adviser Kevin Hassett, a top contender for Fed chair, said on Tuesday that there is “plenty of room” for more rate cuts but noted that rising inflation could shift that outlook.
Silver prices have seen support from dwindling global inventories, high demand, expectations of the Fed easing interest rates, as well as its recent addition to the US critical minerals list.
Elsewhere, platinum lost 1.2% to US$1,669.70, while palladium fell 0.2% to US$1,503.26.
Source: Theedgemalaysia