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MTECHTIPS:-Gold prices steady as investors await Fed review of policy

MTECHTIPS:-Gold prices steady as investors await Fed review of policy

Gold prices tread water on Tuesday in Asia as investors squared positions ahead of a Federal Reserve review of monetary policy this week that could finally pull a trigger on higher rates. On the Comex division of the New York Mercantile Exchange, gold for December delivery traded at $1,107.70, up 0.01%, while silver for December delivery fell 0.03% to $14.375 an ounce. Copper for December delivery gained 0.29% to $2.417 a pound. Overnight, gold futures inched up on Monday amid a relatively flat dollar, as the timing of an interest rate hike by the Federal Reserve and the longstanding Chinese equities crisis remained in focus. China is the world’s largest producer of gold and the second-largest consumer behind India. Investors await the Federal Open Market Committee’s (FOMC) highly-anticipated two-day meeting starting on Wednesday, where the U.S. central bank could raise Federal Funds Rate for the first time in nearly a decade. The Fed’s benchmark rate, which banks use to lend to other institutions on overnight loans, has remained at its current level between zero and 0.25% since December, 2008. In recent months, Fed chair Janet Yellen has indicated that the FOMC will take a “data-driven approach,” to policy normalization, placing a close eye on the strength of the economy and labor markets, as it weighs the decision. In August, U.S. nonfarm payrolls increased by 173,000, below consensus estimates of a 223,000 gain. The unemployment rate, however, fell to 5.1%, its lowest level since April, 2008, prior to the start of the Financial Crisis.

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