Dollar Strength Weighs on Gold Ahead of Fed Decision
Gold prices inched lower on Wednesday as the dollar held firm and market participants awaited the Federal Reserve's policy decision for clues on inflation and interest rates. The Fed will conclude its two-day policy meeting on Wednesday, with expectations indicating a 70% chance of a status quo and a 30% probability of at least a 25-basis-point increase.
US gold futures for August delivery lost 0.4% to $4,021.70, while spot gold fell 0.1% to $4,021.87 per ounce. The dollar was perched near a one-month high, making greenback-priced bullion more expensive for holders of other currencies.
Commerzbank on Tuesday lowered its year-end gold price forecast to $4,500 per troy ounce and said it expects silver to reach $67 per troy ounce by the end of the year. Meanwhile, spot silver gained 0.1% to $57.20 per ounce, platinum inched 0.1% higher to $1,605.96, while palladium fell 0.1% to $1,268.35.