Gold prices edge down in Asia as traders await Fed decision on rates
On Wednesday, gold price eased during Asia trade after an initial revenue as traders await the Fed’s latest verdict on interest rates at next week's FOMC gathering.
In New York, December delivery gold futures sagged 0.24%, trading at $1,320.55 per troy ounce. Apart from that, copper futures tacked on 0.29%, hitting $2.108 per pound, reacting to upbeat Chinese industrial production data this week. The given Asian nation appears to be the world’s largest copper consumer. Last year, it accounted for approximately 40% of world copper consumption.
Overnight, gold prices tacked on for the first time for five sessions, as market participants kept weighing up prospects for future American interest rate hikes following the latest comments from Fed officials.
In Monday’s speech, Fed Governor Lael Brainard warned against lifting interest rates too rapidly. The comments arose after on Friday, Boston Fed President Eric Rosengren informed that low interest rates are raising the likelihood of overheating the American economy.