PT Solid Gold Berjangka | Gold and Copper Steady as Traders Await Fed for Rates Direction
Gold and copper were steady ahead of a Federal Reserve policy decision amid expectations that US interest rates will stay higher for longer.
While Chair Jerome Powell and his colleagues are expected to hold borrowing costs steady later Wednesday in a bid to curb inflation, traders are focusing on the steer provided by officials on the future rate direction. Swaps markets see policy remaining tight for the rest of the year, with a 40% chance of another hike in 2023.
Higher interest rates tend to curb investor demand for non-yielding assets like commodities. Both gold and copper have largely been rangebound for weeks due to a lack of decisive macroeconomic drivers. Several other developed market central banks will report this week, including the Bank of England, which may impact metals prices through the dollar.
Spot gold declined 0.1% to $1,930.16 an ounce at 10:14 a.m. in London. The Bloomberg Dollar Spot Index was flat. Silver, palladium and platinum edged higher.
Metals traders are also eyeing the Chinese authorities attempts to boost the economy which has stuttered since lockdown restrictions were released. Wuhan was among cities on Tuesday to remove home-purchase restrictions in downtown areas as part of a policy package to bolster local property market.
Copper futures edged up 0.2% to $8,310 a ton on the London Metal Exchange. Zinc gained 1.3% and aluminum 0.9%.
Source : Bloomberg
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