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PRECIOUS-Gold steady ahead of U.S. Fed policy decision

Published 27/01/2021, 11:52 am
© Reuters.
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Jan 27 (Reuters) - Gold prices held steady on Wednesday ahead of the U.S. Federal Reserve's monetary policy decision due later in the day and as investors awaited a stimulus package in the world's largest economy.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,849.76 per ounce by 0031 GMT. U.S. gold futures GCv1 eased 0.1% to $1,848.60.

* The Fed will announce the verdict of its two-day policy meeting on Wednesday and it is expected to stand pat on policy.

* Democrats in the U.S. Senate will move forward on U.S. President Joe Biden's $1.9 trillion coronavirus relief plan without Republican support if necessary, Senate Democratic leader Chuck Schumer said on Tuesday. The Biden administration will purchase 200 million more coronavirus vaccines and funnel more to states now, a senior administration official said on Tuesday. The International Monetary Fund on Tuesday raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year would be nearly a full percentage point less severe than expected. U.S. consumer confidence rose moderately in January while lingering concerns about the COVID-19 pandemic led to a further deterioration in households' perceptions of the labor market. China's net gold imports via Hong Kong in December rose for a second straight month, although imports for the year plunged 85% as the coronavirus dealt a blow to consumption of the metal. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , fell 0.1% to 1,172.38 tonnes on Tuesday. GOL/ETF

* Silver XAG= was flat at $25.43 an ounce, platinum XPT= rose 0.1% to $1,099.68, and palladium XPD= gained 0.1% at $2,326.30.

DATA/EVENTS (GMT) 1330 US Durable Goods

Dec 1900 U.S. Federal Reserve's Federal Open Market Committee announces its decision on interest rates followed by statement 1930 U.S. Federal Reserve chairperson holds a news conference

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