Gold Steady Below $1240 Before Fed

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.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.