Gold prices scaled two-week highs on Tuesday, with the dollar losing its grip on recent six-month highs heading into this week’s central bank meetings that kick off with the US Federal Reserve later in the day.
Spot gold was steady at $1,932.32 per ounce, having hit its highest since Sept. 5 earlier in the session. US gold futures were flat at $1,953.90.
The US dollar eased 0.1 percent against its rivals, making gold less expensive for overseas buyers, ahead of key central bank policy decisions by the United States, Britain and Japan over the week.
While the Fed is overwhelmingly expected to keep rates unchanged when it announces its policy decision on Wednesday, center of attention would be on their outlook for futures rates.
“Fed Chair Powell’s speech is likely to highlight that inflation risks have not gone away but they are in a wait-and-see mode for inflation,” said Michael Langford, chief investment officer at Scorpion Minerals. – Reuters
