FX.co ★ Gold holds steady, Fed is to raise rates

Gold prices remained steady even after the statement of John Williams, head of the Federal Reserve Bank of New York, regarding the further rate hikes by the Fed.

According to Williams, the Federal Reserve System will gradually normalize the monetary policy.

In 2018, the Fed raised interest rates three times and is expected to tighten the policy again in December. Williams drew attention to the current low interest rates and added that the central banking system’s goal is to strengthen the economy and maintain this trend as long as possible.

A favorable situation should have a positive effect on gold, the analyst says. The December gold futures fell by 0.08% to $1,224.3 per ounce.

The US dollar index, which measures the greenback against a basket of six major currencies, added 0.06%, reaching 96.2. “The dollar has come under some pressure giving some support to gold,” said Fung.