Gold prices rose to their highest level in two weeks on Tuesday, September 19, as the dollar fell from its highest level in 6 months before the start of the US Federal Reserve’s monetary policy meeting later today, and with markets awaiting a new set of economic forecasts from the US Central Bank.
Gold prices in spot transactions stabilized at $1,933.31 per ounce, after reaching their highest level since September 5th earlier in the session. US gold futures prices rose 0.1% to $1,955 per ounce.
Analysts' opinions
Edward Gardner, an economist in the field of commodities at Capital Economics, said that any expectations from the US Federal Reserve that it will raise interest rates by more than what investors had bet on before could have an impact in pushing gold prices down.
The speed of growth, declining inflation, and the strength of the labor market paved the way for updated expectations from US Federal officials, which will likely reflect their increasing belief in the possibilities of a soft landing for the economy, while keeping another possible increase in interest rates on the table.
US dollar
The dollar hovered below the highest level in 6 months that it recorded last week, making gold cheaper for buyers from abroad, with the Bank of England and the Bank of Japan awaiting monetary policy decisions this week.
Michael Langford, chief investment officer at Scorpion Minerals, said that Fed Chairman Jerome Powell's speech is likely to highlight that the risks of inflation have not ended, but they are in a wait-and-see mode regarding inflation.
Precious metals
As for other precious metals, silver rose in spot transactions by 0.3% to $23.31 per ounce. Platinum rose 0.6% to $938.97. Palladium increased 1% to $1,248.60.
