Gold Steady Under $1240 Before Fed Concludes Meeting

Gold held above the lowest level since January before the Federal Reserve ends a two-day policy meeting that’s expected to see a further cut to stimulus at a time when other central banks are spurring their economies.

Gold for immediate delivery traded at $1,237.58 an ounce at 1:53 p.m. in Singapore from $1,235.55 yesterday, when prices rose for a second day, according to Bloomberg generic pricing. The metal fell to $1,225.67 on Sept. 15, the lowest since Jan. 9, and the 14-day relative strength index held below 30 for a fourth day yesterday, signaling prices may be poised to rebound.

Gold halted a 12-year rally in 2013 as the Fed prepared to reduce the monthly asset purchases, which it has done six times this year. Fed officials are now considering the timing of interest-rate increases, spurring gains in the dollar. In China, the world’s largest bullion consumer, the central bank is providing 500 billion yuan ($81.4 billion) of liquidity to the country’s five biggest banks, Sina.com reported yesterday.

Bloomberg

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