Gold Steady Around $1230 Awaiting Fed

Gold hovered near $1,230 an ounce in early deals on Wednesday, clinging to gains from the previous session after demand for U.S.-made capital goods dropped the most in eight months, as investors wait for the outcome of a Federal Reserve meeting.

Spot gold was up 0.1 percent at $1,229.17 an ounce by 0023 GMT, adding to modest gains on Tuesday.  U.S. gold futures were nearly flat at $1,229.30 an ounce.

The Fed wraps up its two-day policy meeting later on Wednesday at which it is expected to end its bond purchases amid signs of strength in the U.S. economy. The focus will be on when policymakers would start raising U.S. interest rates, which may weigh on gold, a non-interest bearing asset.

CNBC

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.