Gold futures prices remained stable in the territory known on Tuesday, as investors sitting on large tight as before the Federal Reserve and the Bank of Japan to issue decisions eagerly awaited policy.
Gold for December delivery on the Comex Exchange dipped 65 cents, or 0.05%, to trade at $1,317.75 a troy ounce amid expectations of no rate change from the Fed.
Globally, gold climbed 0.24 per cent to $1,316 an ounce in Singapore on Tuesday.
The overwhelming consensus is that the Fed will keep rates unchanged at the conclusion of its policy meeting on Wednesday, some market participants expect to fall a clear indication that it is ready to raise rates before December.
The markets are now pricing in only a 12% chance of a rate hike this week, according to Fed Rate Monitor Tool Investing.com. By December probabilities have been of the order of 59%.
Marketmen said a firming trend overseas where gold is soared for a second day amidst speculation that the Federal Reserve politicians return to stay his hand in an increase in the interest rate, raising the demand for precious metals mainly boosted the sentiment here.
The marketplace is also awaiting the outcome of a policy meeting of the Bank of Japan on Wednesday, through speculation abounding that the Japanese central bank will make momentous changes to its program of easing.
The speculation points to a possible rate cut deeper into negative territory, adjustments to its asset purchase program or new rules on the duration of the securities to be bought in the bonds market.
The Bank of Japan has already applied negative real interest rates and is printing 80 trillion yen ($ 750 million) a year to stimulate inflation after decades of deflation and stagnant growth, however, inflation expectations appear to be weaken.
At the Multi Commodity Exchange, gold for delivery in October was trading higher by Rs 57, or 0.18 per cent, to Rs 30,960 per 10 gram as speculators created fresh positions, taking positive cues from global markets.
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