By Zhang Mengying
Investing.com – Gold was up on Wednesday morning in Asia from near one-month lows as Treasury yields weakened ahead of the U.S. Federal Reserve meeting which is expected to announce aggressive interest rate hikes to tame high inflation.
Gold futures edged up 0.16% to $1,816.40 by 11:44 PM ET (3:44 AM GMT). The dollar which normally moves inversely to gold, fell on Wednesday morning.
The Fed is expected to announce its policy decisions later in the day. The central bank is expected to raise interest rates by 75 basis points.
“In our opinion, it is more likely to expect the gold price to rally before the session (Fed announcement), stay stable, and then over the course of the following week continue its downward trend,” corporate advisory AirGuide director Michael Langford told Reuters.
Benchmark U.S. 10-year Treasury yields eased from a multi-year peak, giving yellow metal support.
“Over the next few weeks in our opinion the overall downward trend in the gold price will be maintained with gold breaking below $1,800/oz,” Langford added.
Investors also await policy decisions from other central banks. The Bank of England will hand down its policy decision on Thursday, while the Bank of Japan will hand it down the day following.
In other precious metals, silver jumped 0.84%. Platinum climbed 0.97% while palladium gained 0.77%.