Gold hits 2-week high as dollar eases ahead of Fed meet

Gold prices hit two-week highs on Tuesday, with the U.S. dollar losing its grip on six-month highs scaled last week, with attention focused on the Federal Reserve’s two-day policy meeting that begins later in the day. FUNDAMENTALS Spot gold was steady at $1,932.79 per ounce by 0058 GMT, having hit its highest since Sept. 5 earlier in the session.

U.S. gold futures were up 0.1% at $1,954.30 per ounce. The U.S. dollar eased 0.1% against its rivals, making gold less expensive for overseas buyers, ahead of key central bank policy decisions by United States, Britain and Japan over the week. U.S. Federal Reserve officials, who have tentatively embraced the possibility they can squelch inflation without a recession, meet this week with an autoworkers strike, a possible federal government shutdown, and a student loan squeeze on consumers posing new risks to that best-case outcome.

European Central Bank policymakers want to soon start discussing how to tackle the multi-trillion-euro pool of excess liquidity sloshing around banks, with raising reserve requirements a possible first move, six sources told Reuters. Hecla Mining said on Monday production at its Idaho mine, which earlier reported a fire, was likely to remain suspended throughout this year, prompting the company to lower its silver output forecast for the period. Spot silver edged 0.1% higher to $23.24 per ounce, platinum was flat at $933.10 and palladium jumped 1.1% to $1,249.07.

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This article was originally published by Indiatimes.com. Read the original article here.