Gold prices nudge higher, market awaits FOMC minutes

The spot gold price edged higher on the morning of Wednesday, October 12 while the market awaits the minutes of the most recent Federal Open Market Committee (FOMC) meeting.

Gold was recently quoted at $1,255.65/1,255.95 per oz, up $1.60 on yesterday’s close. Trade has ranged from $1,253.08 to $1,257.90 so far.

“It looks like the precious metal might be trading in a tight range until any real news is announced ahead of the Fed’s decision [in December on whether or not to raise interest rates],” broker Triland noted.

FOMC members William Dudley and Ester George are scheduled to speak tonight before the release of the FOMC meeting minutes, which are likely to create some volatility for the dollar, market participants noted.

The dollar index was recently at a stronger 97.67, reflecting the growing expectation that the Fed will lift its benchmark interest rate by 25 basis points before the end of the year.

Last night, Fed Bank of Chicago president Charles Evans became the latest member of the central bank’s policy board to pave the way for of a December increase, saying that policy “may well be changing soon”.

“We still see support in the $1,240-50 range for now, with $1,260-65 being the first resistance zone. Investors will continue to eye developments for a potential Dec FOMC rate hike as well as the race to the US presidency as key market movers in the near term,” MKS said.

In the other precious metals, silver was recently quoted at $17.555/17.575 per oz, little changed from the previous close. Platinum edged $1 higher to $945/951 and palladium at $647/655 was up $6.

 

(Editing by Mark Shaw)

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