A wait-and-see attitude permeated investor sentiment on Wednesday, prompting gold futures to hover about their one-week high as policy makers with the U.S. Federal Reserve convened their second of two days of meetings, according to Bloomberg.
Should the central bank officials announce they are continuing with additional monetary stimulus measures, senior broker Kurt Pfafflin with Daniels Trading said precious metals are likely to drive higher in value, also noting monetary policies of central banks like the Bank of Japan and the European Central Bank will be pivotal as well.
“Some strength in the market may have been a function of investor anticipation of U.S. Fed commentary today, which is likely to be dovish in nature,” states a Wednesday report authored by analysts with Deutsche Bank, according to Bloomberg. “The global economy appears increasingly ‘normal,’ and risky assets are reflecting this confidence as the U.S. and Chinese economies apparently recover.”
At 7:57 a.m. on Wednesday, gold futures rose 0.09 percent, a $1.46 lift to $1,665.26 per troy ounce.
Reuters reports bullion ceased four consecutive trading sessions of losses on Wednesday as hopes abounded about the resumption of monetary easing policies.
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