Gold and Silver both posted gains in Asian and early European trading, as investors focused on the outcome of the upcoming Fed rates decision due later today (Wednesday).
After a series of relatively strong US data releases, most notably in the US Jobless claims, the Federal Reserve is expected to leave interest rates unchanged at the conclusion of its two-day policy meeting later today. However, investors will be looking for any signs that the Fed will raise rates next month. A rate increase has been forecast by analysts to happen next month on the back of a strengthening US economy. Investors will also be looking out for any possible indications on the timing of any further rate raises in 2018.
The US Dollar is mostly lower in the major currency pairings. Against the Euro, the US Dollar is down 0.11%. Against the British Pound, the US Dollar is 0.12% lower. Meanwhile, against its Dollar cousins, the greenback is down 0.05% against the Canadian Dollar and down 0.35% against the Australian Dollar. The USD/JPY pairing saw a rise of 0.28% as the Bearish run against the JPY continues. The US Dollar index which measures the greenback against a basket of six weighted currencies is 0.10% higher, valuing the US Dollar at $94.54.
The uncertainty over the Fed Rates decision kept gold and silver well supported. Gold normally trades inversely to the US dollar, but is 0.80% higher, with Silver gaining 1.76%. Traders sought safe haven investments ahead of the key Fed Rates Decision and Friday’s eagerly-anticipated NFP payrolls data.