Gold Advances as Traders Pare Bearish Bets Before Fed Meeting
- Bullion futures rebound from lowest close since June
- Trading volume seen 38 percent below 100-day average
Why Gold Is Trading Near a Two-Week Low
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Gold had the biggest gain in almost two weeks as traders pulled back bets on further declines before meetings of the U.S. Federal Reserve and Bank of Japan this week.
Investors who have been betting on price declines are accumulating protection ahead of the Fed’s meeting Tuesday and Wednesday, where a decision to hold rates steady would give gold a boost, said George Gero at RBC Wealth Management. Odds of a move this week are at 18 percent, Fed fund futures show. The probability rises above 50 percent by December.