Gold prices end flat as Fed meeting kicks off

Gold prices ended stable near the highest peak in two weeks today, Sept. 19, in parallel with the start of the Federal Reserve meeting to discuss the coming monetary policy decision, scheduled to be released tomorrow.

The Organization for Economic Cooperation and Development (OECD) recommended the Fed hold rates at the current 5.25-5.5% range until the second half of 2024, while the European Central Bank and Bank of England tighten policy further.

Meanwhile, Goldman Sachs believes the Federal Reserve is done raising interest rates this year, even if the Fed's "dot plot", which reflects policymakers' interest rate projections and will be updated on Sept. 20, shows "a narrow 10-9 majority still penciling in one more hike.”

Recently, bullion derived support from fears of a government shutdown in the US, in light of a weaker US dollar, amid growing expectations that the US central bank would fix interest rates at the current range.

In terms of trading, gold prices for December delivery held steady today at $1,953.70 per ounce, marking the highest settlement since the beginning of September.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, slumped by 0.15% to 105.07 points at 08:40 pm Makkah time.