Gold held an advance before the Federal Reserve concludes a two-day policy meeting to assess the timing of interest-rate increases as investors weighed slumping energy prices against potential Russian bullion sales.
Bullion for immediate delivery traded at $1,198.77 an ounce at 9:06 a.m. in Singapore from $1,197.01 yesterday, according to Bloomberg generic pricing. The metal rallied as much as 2.5 percent yesterday before ending 0.3 percent higher as U.S. stocks and oil whipsawed and the ruble’s plunge to a record spurred speculation that Russia may sell its gold reserves.
Crude prices at five-year lows have raised concern that inflation may fall further below the 2 percent target set by the U.S. central bank, which has held its key rate near zero since 2008 after exiting stimulus in October. The Bloomberg Dollar Spot Index was little changed below a five-year high as Fed officials gather Dec. 16-17 to discuss whether to retain a pledge to keep borrowing costs low for a “considerable time.”