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Gold Rises, Approaching $1,500 as Fed Day Nears

Published 23/10/2019, 20:25
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Investing.com – It's a week until Fed Day and gold rose to settle just a few dollars short of market longs’ desired perch of $1,500.

The U.S. central bank’s Oct. 29-30 policy meeting is expected to result in the third quarter-point rate cut since July.

U.S. gold futures for December delivery settled up $8.20, or 0.6%, at $1,495.70 per ounce. In post-settlement trade, it was up $8.85, or 0.6%, at $1.496.35 by 3:20 PM ET (19:20 GMT).

Spot gold, which tracks live trades in bullion, was up $5.79, or 0.4%, at $1,493.38.

Bullion is up around 16% on the year, although it has come off from its six-year highs of above $1,550 in September.

Aside from expectations for continued Fed easing, gold was also supported on Wednesday by uncertainties over Brexit as U.K. Prime Minister Boris Johnson’s divorce plan from the EU remained in limbo.

Other global and financial troubles lent support as well.

“Gold continues to find buyers at selloff times as worries about Brexit, Turkey, China tariff talks and U.S. politics are all positive,” said George Gero, precious metals analyst at RBC Wealth Management in New York. “And of course, we have the Fed coming, which is one of the biggest factors of all.”

According to Investing.com’s Fed Rate Monitor Tool, investors see a 93% chance of the Fed cutting rates for the third time this year next week.

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