Gold dips ahead of Fed meet; Oil gains on US inventory dip

The US Federal Reserve's policy decision is due later in the day.

Jan 29, 2020 11:01 IST India Infoline News Service

Indian Gold Feb futures edged lower on Wednesday mirroring the weakness in the international market as investors weighed the economic impact of the new coronavirus and awaited the US Federal Reserve's interest rate decision.

International Gold prices fell 1% on Tuesday, with volatality contuining today as well. MCX Gold Feb futures traded above 40,000/10g, after experiencing a fall.

The US Federal Reserve's policy decision is due later in the day. The death toll from the coronavirus outbreak in China rose to 132, while the number of confirmed cases rose to 5,974, said a Reuters report.

Meanwhile, oil prices rose for a second day on Wednesday, after a five-day rout on talk that OPEC could extend oil cuts amid the outbreak, with support from US data that showed a decline in stockpiles.

Brent crude rose 1.43% $60.36/bbl. US crude was up 1.4% at $54.23/bbl.

Financial markets have been hit by the spread of the new virus out of China with the World Health Organization supporting Beijing’s efforts to beat the outbreak.

Related Story