Gold Nervous ahead of Fed decision

Published on Sep 20, 2023 14:03

Gold futures traded slightly lower in Asian electronic markets as investors exercised caution ahead of the US Federal Reserve`s monetary policy decision. The focus remains on the central bank`s economic projections and insights from Fed Chair Jerome Powell regarding future policy directions.

The Dollar Index (DXY) was relatively flat before the Fed meeting, with expectations that the central bank will maintain current interest rates. DXY was at 105.13, down only 0.07%.

Investors are also eagerly awaiting the Bank of England`s interest rate announcement, expected to be the final rate hike in the current tightening cycle. Meanwhile, the Bank of Japan`s policy decision, set to be announced on Friday, is stirring speculations of an earlier-than-expected move away from ultra-easy monetary policies. These central bank decisions will be closely monitored for their potential impact on financial markets and economic trends.

MCX October bullion futures traded down by Rs 119 at Rs 59,163 per 10 grams. If prices break below Rs 59,900, there is potential for a decline towards the 58,700-58,300 range.