Jun 14, 2022 11:48PM ET
By: AnalysisWatch
Gold rose on Wednesday morning in Asia from near one-month lows as Treasury yields weakened ahead of the US Federal Reserve meeting, which is expected to announce aggressive rate hikes to tame high inflation.
By 11:44 a.m. ET, gold futures had risen 0.16% to $1,816.40. The dollar, which usually moves inversely to gold, fell on Wednesday morning.
The Fed is expected to announce its policy decision later in the day. The central bank is expected to raise interest rates by 75 basis points.
US 10-year Treasury yields fell from multi-year peaks, lending support to the yellow metal.
In our opinion, the overall downward trend in gold prices will be maintained with gold breaking below $1,800/oz.
Investors are also awaiting policy decisions from other central banks. The Bank of England will submit its policy decision on Thursday, while the Bank of Japan will submit it the day after.
In other precious metals, silver jumped 0.84%. Platinum rose 0.97% while palladium gained 0.77%.