Gold prices cede some gains as traders await Fed meeting
NEW YORK (July 25) Gold prices were little changed on Tuesday after finishing Monday’s session at their lowest level in a week. But the yellow metal is managing to hang on to most of its July gains ahead of Wednesday’s critical Federal Reserve decision.
Price action
- Gold for August delivery GC00, -0.30% GCQ23, -0.30% was marginally higher at $1,962.50 an ounce on Comex.
- Silver futures for September delivery SI00, 0.38% SIU23, 0.38% gained 16 cents, or 0.6%, at $24.74 an ounce.
- October platinum PLV23, 1.02% rose by $12.70, or 1.3%, to $982 per ounce, while palladium for September PAU23, +1.67% gained $23.70, or 1.9%, to $1,292.50 per ounce.
- September copper HGU23, 1.88% added 4 cents, or 1%, to $3.86 per pound.
Price action
Traders are waiting to hear from Fed Chairman Jerome Powell on Wednesday to glean some insight about the central bank’s plans for further interest rate hikes.
Although the Fed left rates on hold in June after delivering 10 consecutive interest-rate hikes, the central bank is widely expected to raise rates by another 25 basis points at this meeting.
Any sign that the central bank is planning further hikes beyond July — perhaps another move at its September meeting, or later — could weigh on gold prices, which have benefited from the latest batch of inflation data showing price pressures easing more quickly than expected.
“The downside risk to gold as we wrap up July will be whether the Fed leaves the door somewhat open for further increases to US interest rates,” Jameel Ahmad, chief analyst at Dubai-based brokerage GTC, said in emailed comments to MarketWatch.
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