Gold Near 1 Month Low Ahead of FOMC

Gold struggled to break out of a tight range near its one-month low on Wednesday, as investors waited to hear on the outlook of U.S. interest rates from a Federal Reserve policy meet that kicks off later in the session.

Spot gold eased 0.1 percent to $1,103.95 an ounce by 0037 GMT. The metal has not made any significant move this week, after dropping to a one-month low of $1,098.35 last week.

U.S. gold was little changed at $1,103.30.

Traders are waiting to see if the U.S. central bank will raise rates this week for the first time in nearly a decade.

The Fed will begin its much awaited two-day policy meeting on Wednesday, with a statement expected on Thursday.

The uncertainty over the timing of a rate hike has weighed on gold all year, sending it down over 6 percent. Higher rates could dent demand for non-interest-paying bullion, while boosting the dollar.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza