Gold Steady After Rally as Traders Look to Federal Reserve Meet

(Bloomberg) — Gold held gains after bouncing back above $1,700 an ounce, spurred by a falling dollar as traders examined the latest Federal Reserve comments for indications on the magnitude of its forthcoming interest-rate hikes.

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Bullion on Wednesday rallied 1% after dipping below $1,700 — a threshold rarely breached since the start of the pandemic in 2020. A guage of the greenback’s strength has fallen from its all-time high.

Support for the precious metal came even as interest rate increases looked set to continue in most major economies, apart from China.

US Federal Reserve Vice Chair Lail Brainard said Wednesday monetary policy would “need to be restrictive for some time” in order to tame inflation. The central bank will meet on Sept. 20-21, with a three-quarter point interest rate hike widely predicted.

Spot gold was steady at $1,716.04 an ounce at 9:51 am. in Singapore, up from a low of $1,691.50 a day earlier. The Bloomberg Dollar Spot Index gained 0.2%. Silver, platinum and palladium fell.

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