Gold futures prices were stabilized near $ 1.230 an ounce on Wednesday, since investors remained cautious ahead of the results of a much anticipated meeting of the Federal Reserve whether or not to hike US interest rates earlier or keep them down for longer.
The Fed concludes its policy meeting two days later on Wednesday that expected to end its bond purchases amid signs of strength in the US economy.
But politicians will likely to reinforce its stated policy of wait longer before elevating interest rates after a volatile month in the financial markets.
On the Comex, US gold futures for December delivery quoted at $ 1,229.00 a troy ounce during early European morning trade hours, down 40 cents, or 0.03%. A day before, prices fell to a two-week high of $ 1222.20, before rallying to close at $ 1229.40, up 10 cents, or 0.01%. Futures were likely to find support at $ 1222.00, the low of October 15 and resistance at $ 1255.60, the high of October 21.
“Before US Fed meeting decision, the trading is extremely sluggish in gold and silver. In domestic and international market, gold remains around yesterday’s level. Gold is not getting much currency support. MCX gold is currently trading around Rs 27,200 with marginal gains of 0.1 per cent. While silver is trading above Rs 38,200 gained 0.2 percent.” said 100McxTips commodity experts.
Hold interest rates low in the United States for a longer period bodes well for non-interest bearing assets such as gold.
The data released Tuesday gives the reason the US central bank to hold off from squeezing monetary policy, with the demands of capital assets made in the United States drops more by eight months in September.
The real estate sector in the US has also retained in great soft part. The S & P / Case-Shiller composite index of housing prices in 20 metro areas gained 5.6 percent in August compared to last year, the slowest since November 2012 yearly increase.
The dollar index, which tracks the performance of the US currency versus a basket of six major rivals, remained stable at 85.44.
The dollar weakened against most major currencies on Tuesday after a separate report showed that US orders for manufactured durable goods were unexpectedly much lower for second consecutive month in September.
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