PRECIOUS-Gold gains on dollar decline as market awaits Fed rate outlook
Commodities1 hour ago (Mar 21, 2018 10:00)
March 21 (Reuters) – Gold prices rose on Wednesday as the dollar fell as investors await the outcome of the U.S. Federal Reserve’s meeting this week for signs of the pace of monetary tightening, which could limit the demand for bullion going forward.
Spot gold XAU= rose 0.2 percent to $1,313.96 per ounce at 0336 GMT. Prices fell to a nearly three-week low in the previous session of $1,306.91.
U.S. gold futures GCcv1 for April delivery fell 0.1 percent to $1,313.80 per ounce.
The dollar index .DXY , which measures the greenback against a basket of six major currencies, slipped down 0.1 percent to 90.256 after climbing to 90.445 on Tuesday, its highest in almost three weeks. USD/
With a 25 basis point interest rate hike seen as a done deal, investors will be on the lookout for whether the Fed forecasts four rate increases in 2018, instead of the median of three hikes in December’s quarterly forecast.
“Dealers will be looking at forward guidance to determine the dollar’s prospects, and therefore that of gold,” said Alasdair Macleod, head of research with Toronto-based Goldmoney Inc.
The Fed will make an announcement on interest rates at 1800 GMT on Wednesday and new Fed Chairman Jerome Powell will hold his first news conference at 1830 GMT.