Gold
rose on Tuesday as a retreat in the dollar sparked a rebound after the previous
day's 1 percent slide, but moves were muted as traders awaited the outcome of
this week's Federal Reserve policy meeting.
Gold
has fallen 10 percent this year, largely on the back of expectations that the
Fed is set to hike rates for the first time in nearly a decade.
Now what
to expect??
Rising
rates increase the opportunity cost of holding non-yielding bullion.
The central bank's Federal Open Market Committee
is expected to announce the rate rise at the end of its two-day policy meeting
on
Wednesday, probably the rates will hike from there.
It is
also expected that Gold could bounce higher after the move as attention
switches from the timing of the first rise to the pace of tightening
Watch
more..
More
will update soon!!
Source:
Economics Times
