Gold rebounds on bargain hunt ahead of Fed ruling

Gold prices rose on Wednesday as bargain hunters intervened after the precious metal fell to its lowest level in three weeks in the previous session, with investors now awaiting the Federal Reserve’s interest rate decision later in the day.

RAW MATERIALS

* Spot gold rose 0.7% to $3,977.49 an ounce as of 0114 GMT, after falling to its lowest level since October 7 on Tuesday.

* U.S. gold futures for December delivery rose 0.2% to $3,991.70 an ounce.

* The Fed is widely expected to cut rates at the end of its policy meeting that day, and investors are wary of forward-looking statements from Fed Chairman Jerome Powell.

* Meanwhile, the European Central Bank is expected to leave interest rates unchanged at its policy meeting on Thursday.

* On the trade front, the focus will be on any developments in talks between Washington and Beijing ahead of Thursday’s meeting of US President Donald Trump and his Chinese counterpart, Xi Jinping, in South Korea.

* Non-profitable gold thrives in a low interest rate environment and during economic uncertainties.

*Gold prices have risen about 52% this year, reaching a record high of $4,381.21 on October 20, supported by geopolitical and economic uncertainties, interest rate cuts and continued central bank purchases.

* Meanwhile, the US dollar hovered around a one-week low against major peers ahead of a long-awaited Fed rate cut.

*U.S. private payrolls rose by an average of 14,250 jobs in the four weeks ended Oct. 11, according to the first weekly preliminary estimate of the ADP National Employment Report.

* Elsewhere, spot silver rose 0.7% to $47.36 an ounce, platinum rose 0.4% to $1,593 and palladium rose 1.7% to $1,417.22.