Gold closes in green ahead of Fed rate decision

Gold prices ended in the green today, March 22, with market focus turning to the Federal Reserve’s interest rate decision later in the day.

Investors are awaiting the outcome of the closely watched Federal Open Market Committee (FOMC) meeting later today, with markets pricing in a 25-basis-point (bp) interest rate hike. The decision will be followed by a press conference with Fed Chairman Jerome Powell.

The yellow metal’s prices skyrocketed earlier this week to an 11-month high amid increased demand for safe-haven assets after the Silicon Valley Bank (SVB) and Credit Suisse upheaval in the US.

Bullion prices, however, saw a marginal pullback as investor appetite for risk mounted following the rapid intervention of regulators worldwide to cool the banking crisis and cut gold gains.

In terms of trading, gold for April delivery gained 0.40%, or $8.50, to $1,949.60 an ounce.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, contracted by 0.10% at 103.11 points at 8:28 pm Makkah time.