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Gold edges higher ahead of Fed’s policy meeting

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Gold futures on the COMEX division of the New York Mercantile Exchange closed higher on Monday, amid weaker global stocks ahead of the US Federal Reserve’s key policy meeting starting Wednesday.

The most active gold contract for December delivery gained $4.4, or 0.4 percent, to settle at $1,107.70 per ounce.

The Federal Reserve will release its crucial policy statement on Thursday afternoon at about 2 p.m. EDT, following a two-day, rate- setting meeting at which the Fed might raise its benchmark interest rate for the first time in more than nine years.

Analysts said that if there is no rate-hike decision from the US central bank on Thursday, this may undermine the dollar and boost gold market.

A weaker US dollar can be a positive for commodities including gold, priced in the U.S. dollar as it makes them cheaper for investors holding other currencies.

Gold also got some support from European and US equities in decline on Monday.

For the day, silver for December delivery dropped 14.2 cents, or 0.98 percent, to close at $14.363 per ounce. Platinum for October delivery lost $9.5, or 0.98 percent, to close at $955.4 per ounce.

(IANS)