Gold prices ticked higher on Wednesday after suffering the biggest pullback for a most-active futures contract in six weeks during the prior session.
Now traders are waiting for the Federal Reserve to release its latest decision on interest rates to see how it might impact prices of the yellow metal, which briefly topped $2,000 per ounce earlier this week.
Price action
-
Gold futures for April delivery
GC00,
+0.18% GCJ23,
+0.18%
increased by $2.90, or 0.1%, to settle at $1,943 per ounce on Comex. -
Silver futures for May delivery
SI00,
+0.47% SIK23,
+0.47%
gained 11 cents, or 0.5%, to $22.53 per ounce. -
Palladium for June delivery
PAM23,
+1.44%
fell by $14.60, or 1.1%, to $1,368 per ounce, while platinum prices for April
PLJ23,
+1.98%
rose by $4.50, or 0.5%, to $982 per ounce. -
Copper prices for May delivery
HGK23,
+1.34%
gained 4 cents, or 1.1%, to $4.04 per pound.
Market drivers
Gold prices are likely to move on Wednesday once the Fed announces its decision on interest rates, along with releasing its latest batch of economic projections. Chairman Jerome Powell will also deliver a statement before answering questions from the press.
Two analysts said any hint of more aggressive interest rate hikes from the Fed could weigh on the yellow metal while sending the U.S. dollar and Treasury yields higher. Fed funds futures markets are pricing in roughly two interest-rate cuts before the end of 2023, according to CME’s FedWatch tool.
“A hawkish Fed could see it extend the decline, with $1,900 being the next big test below, followed by $1,860,” said Craig Erlam, senior market analyst at OANDA.
The Fed will release its decision on interest rates at 2 p.m. Eastern Time. Powell’s press conference will begin 30 minutes later.
See: Fed likely to follow ECB’s playbook and hike interest rates this week
