Gold Swings Between Gains and Losses After Fed Rate Decisionby
Gold for immediate delivery swung between gains and losses as traders assessed the outlook for prices after Federal Reserve policy makers signaled they’re open to raising U.S. interest rates in June.
The Federal Open Market Committee omitted previous language that “global economic and financial developments continue to pose risks,” instead saying officials will “closely monitor” such developments, according to a statement released Wednesday following a two-day meeting. The Fed left its benchmark rate unchanged.
Bullion is up about 17 percent this year, helped by speculation that faltering global economic growth would restrain the pace of rate increases. Lower rates are a boon to precious metals, which don’t offer yields or dividends. Gains for gold have slowed this month amid signs of improving U.S. growth and stabilizing financial markets.
“Markets are still obviously uncertain,” said George Milling-Stanley, the head of gold investments at State Street Global Advisors in Boston. “What they were saying was some things have improved, but some things have not. The data are not yet giving them a clear signal as to what to do. The gold market is going to be relieved at that.”
Gold for immediate delivery fell less than 0.1 percent to $1,242.97 an ounce at 2:17 p.m. New York time. Prices advanced as much as 0.8 percent and lost as much as 0.2 percent.