Gold extended a climb from the lowest level since January as investors assessed the health of the U.S. economy before the Federal Reserve begins a two-day policy meeting today.
Bullion for immediate delivery rose as much as 0.4 percent to $1,238.58 an ounce, and traded at $1,236.86 at 12:02 p.m. in Singapore, according to Bloomberg generic pricing. The metal fell yesterday to $1,225.67, the lowest since Jan. 9, before rallying to end 0.3 percent higher. The metal’s 14-day relative-strength index held below the level of 30 for a third day yesterday, signaling that prices may be poised to rebound.
Gold is heading for the first quarterly loss this year as the Bloomberg Dollar Spot Index advanced on speculation that the Fed will raise interest rates after it ends its bond-buying program. The precious metal halted a 12-year rally in 2013 as the central bank prepared to reduce the monthly purchases, which it has done six times in 2014. The Federal Open Market Committee meets today after data yesterday showed industrial production fell in August for the first time in seven months.