Gold prices traded higher on Wednesday, as Treasury yields slipped along with the dollar and investors around the world waited to hear from Federal Reserve Chairman Jerome Powell as the central bank’s July policy meeting is set to conclude.
Price action
-
Gold futures for August delivery
GC00,
+0.54% GCQ23,
+0.54%
gained $10.70, or 0.5%, to $1,974 per ounce on Comex. -
Silver futures for September delivery
SI00,
+0.00% SIU23,
+0.00%
gained 4 cents, or 0.2%, to $24.87 per ounce. -
October platinum
PLV23,
-1.09%
declined by $5.80, or 0.6%, to $970.80 per ounce, while palladium for September delivery
PAU23,
-2.24%
fell by $7.20, or 0.6%, to $1,274 per ounce. -
September copper
HGU23,
-0.80%
fell by 2 cents, or 0.6%, to $3.89 per pound.
Market drivers
Later Wednesday investors will learn more about the Fed’s plans for monetary policy. The central bank is also expected to raise its policy interest rate by 25 basis points after leaving rates on hold during their June meeting.
“The Federal Reserve is expected to raise rates by 25bp today, and markets will be on the lookout for any signals suggesting this could be the central bank’s final hike or whether there could be more still to come,” said Warren Patterson, head of commodities strategy at ING, in emailed commentary.
The Fed meeting is the first of a series of policy announcements from major global central banks, including the European Central Bank and Bank of Japan, due out this week.
Any move in gold prices following Wednesday’s Fed decision will likely be driven by the reaction of the U.S. dollar. A weaker dollar has benefited gold prices recently. Since gold is typically priced in dollars, a weaker dollar makes the yellow metal more affordable to international buyers.
This story originally appeared on Marketwatch
