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Gold futures rally to 2-week high on hopes for dovish Fed

Published 2015-10-28, 11:24 a/m
© Reuters.  Gold rises to 2-week high ahead of Fed outcome
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Investing.com - Gold prices rose to the highest level in almost two weeks on Wednesday, as investors braced for the Federal Reserve’s policy statement on interest rates later in the session.

Gold for December delivery on the Comex division of the New York Mercantile Exchange jumped $14.20, or 1.25%, to trade at $1,180.20 a troy ounce during U.S. morning hours. It earlier rose to $1,183.10, the highest since October 16.

The Fed is widely expected to hold off on raising interest rates at the conclusion of its policy meeting later in the day. The central bank releases its post-meeting statement at 2:00PM ET and investors will be looking for signals on the possibility of a December rate hike.

Concerns over a global economic slowdown led by China and its impact on U.S. growth prospects have prompted market participants to push back expectations for a rate increase to March 2016, though some haven't completely ruled out a move in December.

The Fed refrained from hiking rates at its September meeting, citing concerns about the global economy, particularly China.

The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.

Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.4 cents, or 0.16%, to $2.366 a pound during morning hours in New York.

Market players looked ahead to the outcome of a four-day meeting of China’s top Communist Party officials later this week, amid expectations for further economic reforms.

Copper prices have been under pressure in recent sessions as persistent worries about future demand from top consumer China weighed.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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