Gold was supported by a weaker dollar; Market awaits FOMC meeting

Prices of Gold

Gold futures escape a two-week low on Tuesday’s session as it was supported again by the decline of the U.S. from the session earlier. Investors shifted their attention to the upcoming FOMC meeting that will happen this day.

This coming Wednesday, the U.S. Federal Reserve is scheduled to announce that beginning of its plan to reduce about $4.5 trillion portfolio of assets. Most of it was amassed in response to the financial collapse last 2007 to 2009, which makes another milestone on ending crisis.

Looking on gold prices, U.S. gold futures added more than 0.1 percent to finish at $1,312.60 per ounce for its December delivery and spot gold edged up as high as 0.2 percent to settle at $1,308.86 per ounce. Spot fell to its lowest level for two weeks at $1,304.10 an ounce in the previous trade.

In relation to the rising bullion, the index which measures the value of the greenback relative to its major opposing currencies, the U.S. dollar index, dropped more than 0.1 percent at 91.924. The dollar eased about 0.1 percent against the Japanese yen after it reached its best level since July 27.

It is given that a weaker dollar is good for the yellow metal because it will make the non-yielding bullion cheaper for holders outside the United States, which will further strengthen the demand.

The biggest gold-backed exchange traded fund in the world, SPDR Gold Trust, said that their holdings advanced as high as 0.63 percent to 843.96 tonnes on the previous day from 838.64 tonnes last Friday.

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