Gold steady as investors eye Fed policy meet

Reuters

KEY POINTS
  • Spot gold was little changed at $1,792.86 per ounce by 0116 GMT.
  • U.S. gold futures were flat at $1,795.00.

Gold prices were steady on Thursday as investors awaited signals on the Federal Reserve’s timeline for tapering pandemic-era stimulus measures, after softer-than-expected U.S. inflation data fueled some uncertainty

Fundamentals

Spot gold was little changed at $1,792.86 per ounce by 0116 GMT

Prices fell 0.6% on Wednesday, its biggest one-day decline in a week as U.S. Treasury yields ticked higher

U.S. gold futures were flat at $1,795.00

The Federal Open Market Committee’s two-day policy meeting is due next week and is expected to provide guidance on when the U.S. central bank will start withdrawing its asset purchases

Gold is viewed as a hedge against the inflation and currency debasement likely from widespread stimulus. The Fed’s tapering could tackle both those conditions, diminishing gold’s appeal

Production at U.S. factories slowed sharply in August as Hurricane Ida forced plant closures and an ongoing microchip shortage curbed motor vehicle output, but manufacturing remains strong amid lean inventories

The New York Fed’s business survey showed a higher-than-expected reading

Real interest rates are puzzlingly low around the world, European Central Bank board member Isabel Schnabel said on Wednesday, arguing that investors may be overestimating the impact of the delta variant of the coronavirus on the economy

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 998.46 tons on Wednesday from 1,000.21 tons on Tuesday

Russia produced 135.5 tons of gold in the first six months of 2021, down from 138.1 in the same period last year, the finance ministry said on Wednesday

Silver was steady at $23.83 per ounce

Platinum rose 0.5% to $951.81, having hit an over nine-month low on Wednesday

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