Latest News

UK News

Click Here to read UK News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
PRECIOUS-Gold flat as investors brace for Evergrande risks, Fed policy decision
Published at 22/09/2021 at 02:44

Sept 22 (Reuters) - Gold prices were flat on Wednesday amid rising uncertainties triggered by China Evergrande's debt crisis and anticipation of policy cues from the U.S. Federal Reserve on its timeline for reducing stimulus for the world's largest economy.

FUNDAMENTALS

* Spot gold was flat at $1,775.63 per ounce, as of 0120 GMT, while U.S. gold futures dipped 0.1% to $1,776.30.

* Fed's two-day meet is due to conclude on Wednesday as investors focus on any new signals on when a taper may begin. The U.S. central bank is also likely to provide an outlook on interest rate hikes.

* While gold is considered as a hedge against inflation and currency debasement amid widespread stimulus, a hawkish move by the Fed would diminish gold's appeal. An eventual interest rate hike would also raise the opportunity cost of holding the non-interest bearing asset.

* Asian stock markets made a cautious start on Wednesday, while the dollar held firm near one-month high.

* European Central Bank policymakers still see the recent inflation surge as temporary but a growing number appear to be acknowledging the risk that price growth may exceed their relatively benign projections.

* Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.1% to 1,000.79 tonnes on Tuesday from 1,001.66 tonnes on Monday.

* Swiss exports of gold to India jumped to a five-month high in August while shipments to China fell, Swiss customs data showed on Tuesday.

* Silver climbed 1.2% to $22.74 per ounce, while palladium edged 0.2% higher to $1,910.34.

* Platinum was steady at $954.28. Prices rose 4.7% on Tuesday, its biggest one-day gain since Feb. 10.

DATA/EVENTS (GMT) 1400 EU Consumer Confid. Flash Sept 1400 US Existing Home Sales Aug 1800 US Federal Open Market Committee announces its decision on interest rates followed by statement Governing Council of the ECB holds non-monetary policy meeting in Frankfurt

(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry Jacob-Phillips)

((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net))