By Seher Dareen
(Reuters) – Gold prices edged higher on Wednesday helped by a weaker dollar, while investors held back from making large bets ahead of a widely expected 75-basis-point rate-hike decision from the U.S. Federal Reserve.
Spot gold edged up 0.1% at $1,649.00 per ounce by 10:45 a.m. ET (1445 GMT), while U.S. gold futures was also up 0.1% at $1,651.70.
The dollar index was down 0.1% against its rivals, making gold less expensive for overseas investors. [USD/]
The anticipation of the FOMC (Federal Open Market Committee meeting), and possibly backing off from aggressive rate hikes is moving the gold market, said Daniel Pavilonis, senior market strategist at RJO Futures.
The Fed is due to release its policy statement at 2 p.m. EDT (1800 GMT), but traders’ focus will be on commentary from Fed Chair Jerome Powell later.
Meanwhile, U.S. private payrolls increased more than expected in October, providing an example of labour market resilience and suggesting that the Fed could continue to be aggressive.
Also on the radar – the U.S. non-farm payrolls report is due on Friday, which could offer more clarity on the Fed rate-hike path.
Traders are split on the odds of a 50-bps or 75-bps rate hike in December, according to CME Group’s Fedwatch tool.
“If we do get any sort of story for dollar weakness over that 50-basis-point hint from the Fed, then it shouldn’t be too hard for gold to get back up to $1,670, $1,680 even over the coming sessions,” said City Index analyst Matt Simpson.
Among other precious metals, spot silver slipped 0.1% to $19.64 per ounce, after climbing to a three-week peak on Tuesday.
Platinum rose around 1% to $951.75, while palladium fell 0.9% to $1,864.00.
(Reporting by Seher Dareen and Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.