Gold Holds Range Ahead of US Interest Rate Decision
Gold prices held steady in European morning hours on Tuesday, as markets were jittery ahead of the Federal Reserve’s policy statement this week amid growing uncertainty over a potential rate hike.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were steady at $1,107.40.
The December contract ended Friday’s session 0.40% higher at $1,107.70 an ounce.
Futures were likely to find support at $1,098.20, the low of September 11 and a one-month low and resistance at $1,111.70, the high of September 11.
Investors remained cautious amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.
Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Elsewhere in metals trading, silver futures for December delivery was little changed at $14.360 a troy ounce, while copper futures for December delivery held steady at $2.404 a pound.