Gold stabilizes at settlement as Fed policy meeting looms

Gold bars

Gold prices erased their early-trading losses at settlement today, June 11, as investors awaited US inflation data and the outcome of the Federal Reserve's policy meeting tomorrow.

Bullion for August delivery closed at $2,326.60 per ounce, after falling to $2,314.50 each earlier in the session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.1% at 105.26 points at 09:04 pm Makkah time.

“People are nervous about the Fed meeting tomorrow because if inflation numbers do not show any improvement, the Fed will not signal that it will be lowering rates anytime soon, meaning both the dollar and US interest rates will push up which is negative for gold,” said Marex analyst Edward Meir.

Elsewhere, Everett Millman, chief market analyst with Gainesville Coins, said, “Next key level is on the downside just above $2,300. If gold falls below that, it is much more likely that gold falls further and retests the $2,200 level.”