Gold rises as Fed meeting begins

0 Comment(s)Print E-mail Xinhua, September 16, 2020
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CHICAGO, Sept. 15 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as the U.S. Federal Reserve began its Federal Open Market Committee (FOMC) meeting.

The most active gold contract for December delivery rose 2.5 U.S. dollars, or 0.13 percent, to close at 1,966.2 dollars per ounce.

The two-day FOMC meeting that begins on Tuesday will be the final one before the U.S. election. Investors are closely watching for the Federal Reserve's announcement on Wednesday after the meeting concludes. Market is expecting dovish statements from the Fed, which would cause expectations for an increase in inflation and thus the price of gold as traders often use gold as a hedge against inflation.

Economic figures released on Tuesday are mixed for gold. A report released by the Federal Reserve showed that the industrial production index increased by 0.4 percent in August, slightly worse than expected and worse than the readings from previous months.

A report released by the New York Federal Reserve showed that the Empire State Index increased by 13.3 points to a reading of 17 in September, better than expected.

Investors also weighed the poverty and uninsured rate for health insurance released by the U.S. Department of Commerce on Tuesday which showed the poverty rate fell to 11.7 percent and the uninsured rate went down to 8.0 percent in 2019.

Silver for December delivery rose 10.9 cents, or 0.4 percent, to close at 27.464 dollars per ounce. Platinum for October delivery rose 23.5 dollars, or 2.45 percent, to close at 982.2 dollars per ounce. Enditem

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