Gold and silver prices trades flat with negative bias during morning hours on Tuesday, but stayed near the lowest level in six weeks ahead of an expected interest rate hike by the Fed Reserve.
At the comex gold futures tacked on $1.25, or around 0.1%, to $1,204.30 a troy ounce, within sight of last Friday’s low of $1,194.50.
Meanwhile, spot gold was little changed at $1,204.80 per ounce.
At the MCX Gold was trading 0.05 per cent, or Rs 13, down at Rs 28,238 per 10 gm.
Federal Reserve monetary policy begins two-day meeting on Tuesday, where it is expected widely to raise funds for an acre target range of a quarter-point to a range between 0.75% -1%.
The Fed will also release the latest forecast for economic growth and interest rates, known as the “dot plot.”
We will be watched a news conference after the meeting, Fed Chairman Janet Yellen closely for clues on the pace of rising interest rates in the future. Federal Reserve officials previously expected three to raise interest rates in 2017, but that may move up to four, on signs that a slight increase in the rate of inflation and the continued strength in the labor market.
In the meantime, investors are focusing on the Dutch elections, to be held Wednesday, which is being seen by a lead to the spread of populism in Europe, especially before elections in France next month.
SPDR Gold Trust stood at 832.03 tonnes, up 6.81 tonnes, from the previous business day.
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