10-09-2018 05:40 PM
Gold prices raised at the same time as the U.S. dollar stayed unmoved on Wednesday as investors anticipated particulars of the U.S. Federal Reserve's two-day meeting due later in the day.
According to Mr.Ponmudi, Market analyst & Managing Director at Enrich Commodities - The Fed is extensively expected to hike interest rates later in the day. Markets also look forward to another rate hike before the year end, even though the viewpoint for 2019 is not that comprehensible.
Further - an interest rate decision, the Federal Reserve will also give outits synopsis of economic projections, demarcation policymakers' outlook on economic development, inflation and unemployment.
Higher interest rates boost bond yields, making non-interest bearing gold less striking to investors. They also tend to enhance the dollar, making dollar-priced gold pricier for holders of other currencies.
The U.S. Dollar Index was unchanged at 93.73. The index has dropped around 3% since August.
The dollar has been the ideal safe-haven asset over gold in recent months as traders were driven to buy the U.S. currency in the conviction that the United States has very little to lose from the heated discussion.