Gold prices close in green for first time in 3 sessions

Gold bars

Gold prices ended in the green today, Sept. 18, lifted by a weaker US dollar on the growing prospect of a Federal Reserve outsized interest rate cut.

Bullion for December delivery rose 0.25%, or $6.20, to finish at $2,598.6 per ounce, recognizing gains at settlement for the first time since it reached a record high at the close of the Sept. 13 session.

This came as the US dollar index, which gauges the greenback's strength against a basket of six currencies, held steady at 100.88 points at 08:59 pm Makkah time, after touching 100.70 points in early trading.

In a research note, Commerzbank’s analysts said, “Should the Fed, as we expect, cut interest rates ‘only’ by 25 basis points (bps), this is likely to cause disappointment in the market and thus weigh on the gold price.”

The highlight of the day will be the Fed’s policy decision due later in the day after the Federal Open Market Committee (FOMC) concludes their meeting, when Fed Chair Jerome Powell will also shed light on the US central bank's thinking at a press conference. The Fed is widely expected to opt for a 50-bp rate cut.