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Gold Rises On Softer Dollar, Investors Focus On Fed Meet

GLOBAL-PRECIOUS:Gold rises on softer greenback, traders concentrate on Fed meet

Gold costs rose on Tuesday because the greenback remained subdued, with traders turning their focus to a U.S. Federal Reserve financial coverage assembly, in search of particulars of its plans on inflation focusing on.

  • Reuters
  • Last Updated: September 15, 2020, 10:00 AM IST

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Gold costs rose on Tuesday because the greenback remained subdued, with traders turning their focus to a U.S. Federal Reserve financial coverage assembly, in search of particulars of its plans on inflation focusing on.

Spot gold was up 0.3% at $1,962.78 per ounce by 0259 GMT, including to a 0.8% achieve within the earlier session. U.S. gold futures climbed 0.5% to $1,972.60.






“Gold looks firm mainly because of a weaker dollar and also U.S. Treasury yields are coming down a bit,” mentioned Edward Meir, an analyst at ED&F Man Capital Markets.

The greenback index slipped in opposition to its rivals after its worst session in additional than two weeks, making gold cheaper for holders of different currencies.

Market individuals now await the U.S. Fed’s two-day coverage occasion which ends on Wednesday, its first such assembly since Chairman Jerome Powell unveiled a coverage shift in the direction of higher tolerance of inflation, successfully pledging to maintain rates of interest low for longer.

“After the Jackson Hole symposium, the market is asking for a bit more colour around by what means the Fed plans to stoke inflation,” mentioned IG Markets analyst Kyle Rodda.

“Further still, it is also asking for some indication that the Fed will continue to suppress risk-free rates, if inflation does begin to seriously emerge.”

Gold, which has risen practically 29% this 12 months, is seen as a hedge in opposition to inflation. Lower rates of interest lower the chance value of holding non-yielding bullion.

U.S. Treasury Secretary Steven Mnuchin and Jerome Powell will testify earlier than the Senate Banking Committee on coronavirus aid, the committee mentioned in a press release on Monday.

Elsewhere, platinum rose 0.5% to $958.48 per ounce after hitting its highest since Aug. 18 at $966.

Silver gained 0.7% to $27.35 and palladium was up 0.3% at $2,318.80.

Disclaimer: This publish has been auto-published from an company feed with none modifications to the textual content and has not been reviewed by an editor


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