Gold slips as dollar halts slide ahead of Fed policy decision – Gulf Today

Gold slips as dollar halts slide ahead of Fed policy decision – Gulf Today

Picture used for illustrative purpose. File





Gold eased on Wednesday as the dollar briefly halted its slide and investors booked profits from a record rally, with some caution setting in as focus turned to a US Federal Reserve meeting widely expected to reinforce loose monetary policy.

Spot gold was down 0.4% at $1,951.24 per ounce by 0601 GMT. Prices hit an all-time high of $1,980.57 on Tuesday. U.S. gold futures rose 0.1% to $1,947.40.

Gold is closely following moves in the dollar, which has halted its fall, said DailyFx currency strategist Ilya Spivak.

"As we get closer to the Fed announcement and the event risk, the market will get a bit more wary," Spivak added.

The dollar index was little changed at 93.668 , having touched its lowest level since June 2018 this week. A weaker dollar, also considered a rival safe haven, makes gold cheaper for holders of others currencies. 

Coronavirus cases continued to surge in the United States and stood at over 16.6 million globally. 

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