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Investing.com – Gold rose in early morning trade in Asia on Wednesday from nearly one-month lows as Treasury yields weakened ahead of the US Federal Reserve’s meeting, which is expected to announce strong interest rate increases to tame high inflation.
It also rose 0.16% to 1,816.40 by 11:44 PM ET (3:44 AM GMT). The dollar, which usually moves in reverse with gold, fell on Wednesday morning.
The Federal Reserve is expected to announce its policy decisions later today. Also, the central bank is expected to raise by 75 basis points.
gold movement forecast
“In our view, we are likely to expect a rally ahead of the session (the Fed announcement), to remain stable, and then over the next week to continue its downtrend,” Michael Langford, director of corporate advisory firm AirGide, told Archyde.com.
While the 10-year benchmark yields retreated from multi-year highs, giving support to the yellow metal.
“Over the next few weeks, in our opinion, the overall downtrend in gold price will be maintained with gold breaking below $1,800/oz,” Langford added.
Investors are also waiting for policy decisions from other central banks. The Bank of England will release its policy decision on Thursday, while the Bank of Japan will deliver it the following day.
For other precious metals, it jumped 0.84%. Platinum rose 0.97 percent and 0.77 percent.