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.


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.
Subscribe to Investomania for more gold news and updates.
Sign up for Investomania
Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.
No spam. Unsubscribe anytime.