Gold prices mark fourth consecutive gain amid central bank decisions
Gold prices experienced a modest increase for the fourth consecutive session on Wednesday, as investors await key decisions on interest rates from major central banks, including the Federal Reserve, Bank of Japan, and Bank of England. The December delivery gold price saw a slight rise of 70 cents, or less than 0.1%, reaching $1,936 per ounce on Comex. This follows Tuesday's settlement at $1,953.70 per ounce, the highest recorded since September 1.
Other precious metals also showed movement on Wednesday. December silver rose by 12 cents, or 0.5%, settling at $23.57 per ounce. Conversely, October platinum and December palladium experienced declines, with platinum falling by $4.10 (0.4%) to $944 per ounce, and palladium decreasing by $23 (1.8%) to $1,289 per ounce. Copper for December delivery also saw an increase of 2 cents or 0.6%, reaching $3.77 per pound.
Throughout the summer, gold prices have been gradually declining within a narrow range. However, the recent uptick has sparked optimism among traders for more definitive market trends following the Federal Reserve's decision and subsequent press conference on Wednesday.
Investors are closely watching whether the Federal Reserve will follow the European Central Bank's recent actions. The latter hinted at halting further interest rate hikes after implementing one earlier this month. The market is keenly interested in whether Jerome Powell, Chairman of the Federal Reserve, will keep options open for additional rate hikes in the near future.
Market observers suggest that a pause in rate hikes coupled with an assertion similar to that of the European Central Bank—that they have done enough—could potentially be the most favorable outcome for gold prices. However, given the multitude of factors to consider from these meetings, other elements will also influence market trends.
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