Gold still up as Fed policy meeting looms; silver trades above $31

Gold bars

Gold prices continued to rise today, Sept. 16, extending their record gains, with the US dollar easing as investors looked to whether the Federal Reserve might move more aggressively to cut rates at its policy meeting next week.

Market expectations vary on whether the US central bank will slash interest rates by 25 or 50 basis points (bps) at its policy meeting that will start tomorrow and end on Wednesday.

Focus is also turning to the quarterly economic forecasts that the Fed is due to issue, which may result in the projected interest rate path this year.

Bullion for December delivery climbed by 0.12%, or $3.10, to $2,613.80 an ounce at 08:14 am Makkah time, with spot prices also surging 0.38%, or $9.72, to $2,587.42 per ounce.

Silver futures for September delivery, likewise, added 0.9%, or 28 cents, to $31.36 an ounce, in tandem with a 0.29% rise in platinum spot prices to $1,001.56 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.24% to 100.87 points.