Gold Traders wait on Today’s Fed Decision

Gold futures were virtually flat during Asian trade hours this morning. Traders are waiting on today’s Federal Reserve monetary policy decision. Markets will be looking for any clues on future rate increases in 2018.

As of 1 am GMT, the widely trade spot gold futures contract (XAU/USD) was flat. It was fetching $1,295.22 per ounce.

U.S. gold futures, for August delivery, fell a bit from yesterdays close. They were down 0.1 percent to trade at $1,298.80 per ounce.

The U.S. dollar index, which measures the U.S. currency in a basket of six other Forex majors, was a bit higher. The dollar gained 0.1 percent to trade at 93.834. The dollar index was up 0.24 percent yesterday. The USD/JPY Forex market rose 0.1 percent. It was trading at 110.42 yen. It was at its May 23 high of 110.54.

Gold Traders wait on Today’s Fed Monetary Policy Announcement

The Federal Reserve is widely expected to raise rates at the end of their two day meeting. Traders and the financial markets will look at how the American central bank talks about its monetary policy. Borrowing costs are back at normal levels amid as the States’ are seeing solid economic growth.

The Federal Reserve Bank’s Jerome Powell, a staunch advocate for faster rate hike hikes, will be voting again by next month. However, the pace of rate hikes under Chair Jerome Powell is unlikely to change.

Looking at economic data out of the United States, monthly consumer inflation was up in May. Gasoline prices slowed down. The Federal Reserve will likely continue to raise interest rates gradually for the remainder of the year.

The Fed decision and press conference is scheduled for 6 pm GMT today.