Gold narrows as investors focus on upcoming Fed policy

Gulf Today Report 

Gold in a narrow range on Wednesday as investors await US Federal Reserve’s monetary policy decision and US stimulus package.

Spot gold was down 0.1% to $1,849.16 per ounce while US gold futures eased 0.2% to $1,847.50.

Jeffrey Halley, a senior market analyst at OANDA said: "gold appears to be in a holding pattern as investors are waiting for the Fed."

Simple monetary policy pressurizes government bond yields and benefits non-yielding gold. 

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"The new round of fiscal stimulus may not arrive before mid-March, which is later than what the market had expected... so eventually we may see a delayed and smaller stimulus, which is not good for gold," said DailyFX strategist Margaret Yang.

Yang added that gold is likely to trade between $1,810 and $1,870 in the near term.

Concerns over coronavirus as cases suppress 100 million supports gold.