Gold records highest close since August-end

Gold prices rallied at settlement today, Sept. 20, touching their highest levels since August-end, as the US dollar retreated amid forecasts that the Federal Reserve would decide to keep interest rates on hold at the conclusion of its two-day policy meeting later in the day.

“What is still keeping the gold price supported is solid demand from central banks, which continue to diversify into gold,” UBS analyst Giovanni Staunovo was quoted as saying by Reuters.

“The key is going to be what are [Fed Chair Jerome] Powell’s comments after the actual (rate) announcement,” Bob Haberkorn, senior market strategist at RJO Futures, said, adding, “There are concerns about energy getting too high.”

The Fed’s rate-setting committee will release its decision and updated projections later in the day, which is widely expected to fix interest rates at the current range. Also today, all eyes are on Powell’s post-meeting press conference to elaborate on the decision.

At the close of today’s session, gold for December delivery climbed by 0.70%, or $13.40, to end at $1,967.10 per ounce — the highest settlement since Aug. 30.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, shed 0.45% to 104.74 points at 08:33 pm Makkah time.