Gold closes in red ahead of Fed policy decision

Gold prices closed in the red today, Feb. 1, as investors stayed on the sidelines awaiting the US Federal Reserve’s monetary policy decision later in the day amid expectations of a 25-basis-point (bp) rate hike.

Automatic Data Processing Inc. (ADP) data for jobs in the US private sector, which was released today, showed that 106,000 new jobs were added in January, below estimates for the addition of 176,000 job.

Elsewhere, readings on the ISM Manufacturing Purchasing Managers Index (ISM PMI) indicated a contraction for the third consecutive month.

Gold for April delivery declined 0.1%, or $2.50, at $1,942.80 per ounce.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.4% to reach 101.734 points at 9:40 pm Makkah time.