Gold falls amid approaching Fed rate decision

Gold prices declined on Wednesday as the Federal Reserve's anticipated rate hike announcement dampened demand for zero-yield bullion.


Spot gold decreased by 0.06% to $1,866.73 per ounce. American futures for gold slightly decreased to $1,867.8.


Benchmark yield on US 10-year Treasuries strengthened after retreating from a key 3% mark in the previous session, ahead of a widely expected large interest rate hike by the Fed as it tries to contain rising US inflation.


The Federal Open Market Committee of the US central bank is set to issue a policy statement at 18:00 GMT, followed by a press conference by Fed Chairman Jerome Powell.


Market awaits decision to raise overnight benchmark interest rates and details of Fed balance sheet cut of $8.9 trillion


"A 50 basis point uptrend is now valued by the markets ... If the announcement is even more hawkish, gold is likely to come under pressure again," said OANDA Senior Analyst Geoffrey Halley.


"If the statement remains largely unchanged in its guidance, then a short-term recovery to $1,880 is possible as the US dollar is likely to fall."


The dollar remained close to 20-year highs, making gold less attractive to foreign buyers at the price of the dollar.


Russian troops hit targets in eastern Ukraine on Tuesday even as the European Union prepared to impose oil sanctions on Moscow.


Ingots are seen as a safe store of value in times of economic and political crises.


Spot silver shed 1.04% to $22.32 an ounce, while platinum rose 0.75% to $969.19. Palladium fell 0.23% to $2,250.36.

04 May, 2022

Read more:

World Bank: approved $350 million financing for RISE-II operation in Pakistan

07 December, 2023

China keeps Loan Prime rate steady at record Lows.

14 December, 2023

'A lackluster January through May': One chart shows what stock investors can expect in a crucial election year

30 December, 2023

With Bitcoin Spot ETF Approvals, Halving and Incoming Upgrades, What Should You Expect from BTC in 2024?

05 December, 2023

Polygon Labs Announced Upcoming Updates for Products and Events Expected in December

28 November, 2023

Cross-Chain Protocol Wormhole Secures $225M in Funding, Now Valued at $2.5B

22 November, 2023

United Kingdom Seeks to Strengthen Its Digital Asset Sector

14 November, 2023

The Dow Jones has seen a dreaded 'death cross.' Here's what it means.

06 November, 2023

USDT Accounts for 80% of All Crypto Transactions in Brazil in 2023

30 October, 2023

US SEC Approves Grayscale’s Ethereum ETF Filing

22 October, 2023

Binance Secures New Euro Banking Partners to Resume Fiat Transactions

16 October, 2023

Bitcoin Is Good Hedge in Current Geopolitical Tensions, Says Paul Tudor Jones

10 October, 2023

Circle Intervenes in SEC Case against Binance, Defends Stablecoins’ Regulatory Status

29 September, 2023

Web3 Startup IYK Raised $16.8M in Recent Funding Round Led by A16z

27 September, 2023

Bybit to Suspend UK Operations in Response to FCA’s New Rules

24 September, 2023

Celsius Former Chief Revenue Officer Pleads Guilty to Criminal Charges, Awaits Sentencing

15 September, 2023

US Judge Dismisses Class Action Suit against Uniswap

31 August, 2023

Arrange a call