Gold steady ahead of Fed meeting
Duncan Richardson, News Editor
28 Jan 2015, 4:17 p.m.
The gold price continues to trade in a tight channel near $1,290 per ounce as traders turn their focus to the Federal Reserve’s latest two day policy meeting.
Traders are starting to anticipate the slowdown in the global economy will result in the Federal Reserve delaying an interest rise. The Fed originally signalled they would be prepared to raise interest rates in June and any extension on this time frame should boost the gold price.
The Fed will announce their latest policy statement at 2pm Eastern time.
The gold price is currently trading at $1,288.03 per ounce down slightly from last week’s five month high of $1,306.20. Silver is currently trading at £11.83 per ounce, platinum £830.76 per ounce and palladium £517.09 per ounce.
Gold imports from Hong Kong into the world’s largest consumer China dropped nearly a third in 2014, although total imports in 2014 were still the second highest ever at 813 metric tonnes. Many gold analysts believe the decrease is due to the Chinese importing gold into other regional centres rather than an overall fall in imports.
Physical demand in China is expected to pick up this week ahead of Chinese Lunar New Year.