By Gina Lee
Investing.com – Gold was up on Thursday morning in Asia, bouncing back from a three-week low. Investors digested the latest policy decision from a “patient” U.S. Federal Reserve that will begin asset tapering beginning this month.
Gold futures gained 0.68% to $1,775.95 by 11:44 PM ET (3:44 AM GMT). The dollar, which normally moves inversely to gold, edged up on Thursday.
The Fed handed down its decision on Wednesday, with Fed Chairman Jerome Powell indicating that interest rate hikes will not come anytime soon. However, he added that “we think we can be patient. If a response is called for, we will not hesitate.”
Although the Fed maintained its view that inflation is temporary, the smooth start to the central bank’s asset tapering program gave global shares a boost.
Investors now await the Bank of England (BOE)’s policy decision, due later in the day. BOE is expected to either hike interest rates from an all-time low or to wait for the post-lockdown economy to be ready for such a move.
Also, on investors’ radars in the latest U.S. jobs report, including non-farm payrolls, due on Friday.
In Asia Pacific, data released earlier in the day showed that Japan’s services purchasing managers index was 50.7 in October. This was the first growth in services sector activity in 21 months, with an ebb in the number of COVID-19 cases boosting consumer sentiment and demand.
In other precious metals, silver inched up 0.1%, platinum gained 0.7% and palladium was up 0.6% to $2,012.15.