Gold hovers above $2,150 as markets await fed rate signals

Gold steadies above $2,150 as traders brace for Fed's interest rate guidance, eyeing potential cuts in 2024.

Gold hovers above $2,150 as markets await fed rate signals

Gold prices traded sideways overnight on Wednesday, lingering above the $2,150 per ounce level as investors eyed the Federal Reserve's policy meeting for clues on potential interest rate cuts in 2024.

The spot gold (XAU/USD) price hovered around $2,157.50 an ounce by 07:10 GMT, with markets anticipating the US central bank to keep rates unchanged at the conclusion of its two-day meeting. However, the focal point will be Fed Chair Jerome Powell's press conference and any indications on the trajectory of rates for the remainder of the year.

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While markets have priced in rate reductions later in 2024, hotter-than-expected inflation readings over the past two months could prompt a more hawkish stance from the Fed. Any signals of fewer rate cuts than anticipated may weigh on non-yielding bullion and other precious metals, as higher interest rates diminish the appeal of holding gold.

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