Commodity News
HeadLine : Gold flat as investors brace for Evergrande risks, Fed policy decision
Date : Sep 22 2021
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. 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. Asian stock markets made a cautious start on Wednesday, while the dollar held firm near one-month high.  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. 

Source: Reuters
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