Global gold prices dip on lack of clear direction from FOMC

Back home, MCX Gold Oct expiry futures were up marginally at Rs38,025/10gms amid muted demand.

Aug 22, 2019 08:08 IST India Infoline News Service

Global gold prices dipped on Thursday as traders were left guessing about the US Federal Reserve’s plans for further rate cuts.

Gold futures for December delivery, traded on the COMEX, declined 0.5% to ~$1,510/ounce.

"Members generally agreed that it was important to maintain optionality in setting the future target range for the federal funds rate and, more generally, that near-term adjustments of the stance of monetary policy would appropriately remain dependent on the implications of incoming information for the economic outlook," FOMC said.

The Fed added that the rate cut was a “part of a recalibration of the stance of policy, or mid-cycle adjustment” and not the start to a string of rate cuts.

Fed Chairman Jerome Powell is expected to speak on Friday with regard to the outlook of the monetary policy.

Back home, MCX Gold Oct expiry futures were up marginally at Rs38,025/10gms amid muted demand.

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