Gold prices were seen trading flat during the Asian trading hours on Tuesday ahead of the Federal Reserve’s two-day meeting, which will begin today.
Yellow metal futures edged 0.08% higher at $1,353.30 an ounce during the Asian trading session on Tuesday, while silver futures declined 0.02% to $22.535 an ounce at the time of writing.
While holdings in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Trust came in at 872.02 tonnes on Monday.
Policymakers from the Federal Reserve are expected to meet this week and release its statement by Wednesday, with predictions that the Fed will delay tapering its monthly asset-purchasing program after the release of the disappointing US payroll data and the 16-day government shutdown.
“We believe the tapering will definitely be delayed and that’s positive for precious metals,” Brian Lan, managing director of GoldSilver Central, said, “gold prices will close above $1,400 by the end of the year,” he added.
On Monday, a report released by the Federal Reserve showed that the US industrial production rose 0.6% higher in September on a monthly basis, compared to the previous reading of a 0.4% rise in August. The report was expected to be released on October 17 but was delayed due to the partial government shutdown.
Meanwhile, the US National Association of Realtors posted a report showing the pending home sales advanced in September by 5.6%, compared to the decline of 1.6 seen in the previous month.
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