Gold price edges lower, investors on sidelines ahead of FOMC

Gold continued to trade in negative territory on the morning of Tuesday December 13 in London while investors await the outcome of the US Federal Open Market Committee’s (FOMC) two-day meeting that starts later today.

The spot gold price was recently quoted at $1,158.65/1,159.05 per oz, down $4.20 on the previous day’s close. Trade has ranged from $1,158.25 to $1,165.05 so far.

“The approaching FOMC meeting is widely believed to bring in the first rate hike since December 2015. The strong likelihood of higher rates at the meeting has been a pronounced dampener on gold, helping to force prices near $1,150,” HSBC analyst James Steel said.

“The market’s attention will also shift to how many – if any – rate rises are likely to come in 2017. It will scrutinise this week’s FOMC meeting for any clues as to Fed policy thinking,” he added.

In the other precious metals, the spot silver price was unchanged at $16.990/17.010 per oz. Platinum at $924/929 per oz fell $5 and palladium at $723/729 per oz edged $3 higher.

(Editing by Wei Jun Lau)

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