Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold listless as investors await Fed verdict

07/28/2021 | 01:07pm EDT
Gold bars are pictured on display at Korea Gold Exchange in Seoul

(Reuters) - Gold prices were subdued around $1,800 on Wednesday as investors treaded cautiously ahead of a U.S. Federal Reserve policy decision due later in the day.

Spot gold was up 0.1% at $1,800.81 per ounce by 12:50 pm EDT. U.S. gold futures were flat at $1,799.70.

Market participants are keen for any details on the Fed's approach to tapering its asset purchases, following rising inflation and a spike in Delta variant COVID-19 cases, from its policy statement at 1800 GMT on Wednesday.

"If the Fed suggests that inflation is heating up, you might see some buying into gold, but if they see it as transitory, then you're probably going to see some selling," said Michael Matousek, head trader at U.S. Global Investors.

The Fed needs to taper its asset purchases before it can raise rates and the pace of its tapering will affect gold, with a more gradual tapering through 2022 benefiting the precious metal, Matousek added.

Edward Moya, senior market analyst at OANDA also said a slower steepening of the U.S. Treasury yield curve should support gold for the rest of the year even as the Fed tapers asset purchases and the dollar strengthens.

Higher interest rates tend to weigh on bullion, as it raises the opportunity cost of holding the non-yielding metal.

The dollar, meanwhile, was up 0.1%, making gold more expensive for holders of other currencies. [USD/]

Elsewhere, silver rose 0.7% to $24.85 an ounce, after hitting a near four month low on Tuesday.

Oanda's Moya attributed silver's weakness to concerns over the impact of Delta variant on the metal's industrial demand.

But, "once emerging markets have more vaccines in place and COVID-19 appears more contained, industrial demand should pick-up and silver could outperform gold this year."

Palladium gained 0.7% to $2,625.64 and platinum rose 0.6% to $1,057.08.

(Reporting by Nakul Iyer in Bengaluru; Editing by Anil D'Silva and Barbara Lewis)

By Nakul Iyer

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.51% 0.7258 Delayed Quote.-5.16%
BRITISH POUND / US DOLLAR (GBP/USD) -0.37% 1.36698 Delayed Quote.0.34%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) 0.01% 0.7897 Delayed Quote.0.57%
EURO / US DOLLAR (EUR/USD) -0.18% 1.1718 Delayed Quote.-3.88%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.01% 0.013548 Delayed Quote.-1.04%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.73% 0.7012 Delayed Quote.-1.60%
PALLADIUM -0.90% 1971.5 Delayed Quote.-18.93%
SILVER 0.00% 22.39 Delayed Quote.-14.41%
Latest news "Economy & Forex"
06:33aHuawei CFO leaves Canada after U.S. deal on fraud charges, detained Canadians head home
06:05aChina welcomes Huawei executive home, but silent on freed Canadians
06:05aChinese police take away HNA chairman, CEO on suspicion of crimes
06:04aPalm prices seen firm until Feb, but could ease from March -analyst Mistry
05:00aHaitian migrants on the move weigh jobs in Mexico after clearout
04:55aZimbabwe bolsters emissions targets ahead of climate summit
04:16aGroup behind Hong Kong's annual Tiananmen vigil disbands amid probe
04:15aS&P pushes Ethiopia's ratings into junk territory on delayed debt restructuring
04:04aMoody's upgrades Hungary's rating on strong rebound in boon for Orban
04:03aChinese coal firms meet to address winter supply challenges
Latest news "Economy & Forex"