Gold hits two-week highs ahead of Fed meeting

Goldan asset considered a refuge in times of uncertainty, reached two-week highs this Tuesday, while the dollar US fell from its six-month highs.

This event occurs before the start of Federal Reserve monetary policy meeting, which was scheduled to begin around noon this Tuesday. Investors are eager for lThe central bank’s new economic forecastswhich could give clues about future decisions about interest rates.

In the markets, the price of gold spot remains stable at US$1,933.31 per ounce, after having reached su highest point since September 5 at the beginning of the session. Simultaneously, gold futures in the United States they experienced a modest increase of 0.1%, standing at $1,955.

Edward Gardnera commodities economist at Capital Economics, said any sign of a possible rise in prices interest rates by the Federal Reserve, greater than anticipated by investors, could put downward pressure on the price of gold.

Gold: the market expectation

The experts highlighted that the acceleration of economic growththe moderation of inflation and solidity of the labor market were creating a favorable scenario for the Federal Reserve update its economic projections. These updates would likely reflect the central bank’s growing confidence in a smooth economic recovery, although they would also they could leave open the possibility of future increases in interest rates.

In relation to the dollar index, andIt remained below its six-month highs from the previous week, resulting in a lower price of gold for foreign buyers. In addition to the Federal Reserve meeting, key decisions from the UK and Japanese central banks were expected in the same week, adding further uncertainty to the markets.

Gold, being an asset that does not generate interest, could lose appeal if the Federal Reserve announced further interest rate increases as a measure to control inflation. This generated a scenario of caution among investors.

Regarding other precious metalssilver spot experienced an increase of 0.3%, reaching $23.31 per ounce. In addition, platinum and palladium also recorded gains, with increases of 0.6% and 1%, standing at $938.97 and $1,248.60 respectively. These movements in precious metal prices reflect the dynamics and sensitivity of the market to the economic and political variables at play.