Gold subdued as investors focus on Fed verdict | The GRS Solution

Gold prices inched down on Wednesday as the dollar held firm, while investors waited on the outcome of the Federal Reserve's meeting later in the day when policymakers are expected to cut interest rates.

Spot gold was down 0.2% at $1,427.92 per ounce as of 0417 GMT.

U.S. gold futures edged 0.1% lower to $1,440.50 an ounce.

"Most of the people are staying on the sidelines due to the Fed meeting. If the Fed does reduce rates, gold may come down a little as a 25 basis point cut is already priced-in," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

"We are also looking at whether there will be further rate cuts. Over the longer term, we are still bullish on gold but in the short-term, we might see a bit of correction before it continues to move higher." Lan added.

Fed funds rate futures are now fully pricing in a 25 basis point rate cut on Wednesday and another 25 basis point reduction by September.

For Quick Trial – 62329-95233 |
or mail us here: info@thegrssolution.com
or visit www.thegrssolution.com
✆ -0731-4974186
Nifty Future Tips 
Option Tips

Markets will be watching out for guidance on whether the Federal Open Market Committee's expected move is a one-time cut or the beginning of a rate-cutting cycle.

Cementing expectations of Fed rate cuts, U.S. consumer spending and prices rose moderately in June, pointing to slower economic growth and benign inflation.