Gold hits 2-week high ahead of US Fed meeting

Gold prices held near two-week highs on Tuesday, ahead of the US Federal Reserve meeting on September 19-20. Spot gold was down 0.1% at $1,930.39 per ounce by 0638 GMT, but hovered near its highest since September 5 hit earlier in the session. US gold futures edged down 0.1% to $1,951.60.

The Fed is overwhelmingly expected to keep rates unchanged when it announces its policy decision on Wednesday.

According to Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors, one of the key factors weighing on gold prices is the increasing belief that the US Federal Reserve will implement another interest rate hike by the end of this year.

However, the prevailing market consensus suggests that the Fed will maintain interest rates at their current levels during its forthcoming policy meeting, scheduled for September 19-20, added Sachdeva.

On the domestic front, prices could hover in the range of ₹58,700 – 59,300 could be expected said sources.