Gold Price Climbs as Markets Turn Attention to Fed Meeting

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By Brendel Balaga

Gold futures continued to push higher on Wednesday, after rising overnight as investors focused on the Federal Reserve’s rate decision for new hints on the future direction of U.S. interest rates.

While the U.S. central bank is expected to leave interest rates at current rates, the Federal Reserve could provide guidance on the frequency and timing of rate hikes over the next several months.

Many anticipate the pace of rate increases to be gradual as the prospect of a global economic growth and differing monetary policies between the U.S. and other countries continue to be a factor.

Investors and analysts expect one more rate increase in 2016, while the Fed’s forecasts point to two more. At the end of 2015, the U.S. central bank projected four rate hikes in 2016.

Gold for June delivery in New York gained $6.85, or 0.55%, to trade higher at $1,250.30 a troy ounce by 8:35AM ET.

On Tuesday, gold prices went up by $3.20, or 0.26%, lifted by a weaker dollar and disappointing U.S. economic data. Gold has been up nearly 17% so far this year

The U.S. dollar index, the standard measure of the greenback’s position against rival currencies, was at 94.36, down 0.1%.

Meanwhile, silver futures for May delivery went up 24.0 cents, or 1.4%, to trade higher at $17.35, while copper shed 0.9 cents, or 0.38%, to $2.238 a pound.

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