Gold Prices on Pause Ahead of Expected Fed Rate Hike

© Reuters. Gold inches slightly higher, remains cautious ahead of Fed interest rate decision© Reuters. Gold inches slightly higher, remains cautious ahead of Fed interest rate decision

Investing.com – Gold prices were little changed in midmorning trade on Wednesday as traders looked ahead to the Federal Reserve’s policy decision.

At 10:06AM ET (14:06GMT), for August delivery on the Comex division of the New York Mercantile Exchange inched up 70 cents, or 0.05%, to $1,300.10 a troy ounce.

According to data released on Wednesday, , underlining the case for the Fed to stick to its plans to hike interest rates gradually.

Markets expect the U.S. central bank to hike interest rates by 25 basis points, bringing federal funds rate target to a range between , when it announces its decision at 2:00PM ET (18:00GMT) Wednesday.

With the move , market participants are focusing on whether the Fed will hint at the , compared to its forecast for three further increases back in March.

In other metals trading, gained 0.5% at $16.975 a troy ounce by 10:07AM ET (14:07GMT).

slid 1.1% to $1,004.50.90 an ounce, while sister metal dropped 0.2% at $899.50.

In base metals, rose 0.3% to $3.260 a pound.

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Source: Investing.com