Gold narrows as investors focus on upcoming Fed policy - GulfToday

Gold narrows as investors focus on upcoming Fed policy


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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. 


IMF lifts global growth forecast, still sees exceptional uncertainty

Gold prices advance on US stimulus hope

UK unemployment reaches 5.0 per cent

"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.


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