Gold trading got off to a good start as the market awaited the policy announcement by the Federal Reserve (Fed) in the early hours of Thursday morning (Malaysian time).
After falling below the $ 1,800 per ounce price level, the precious metal gold returned to record gains at $ 1,806 at the start of the European session after seeing encouraging readings from Australian inflation data in the second quarter of this year.
Gold tends to rise in the event of an increase in inflation, as it is considered a hedge to inflation.
Among the focus of the market at the moment is the two -day meeting of the Federal Reserve's Open Market Committee (FOMC) which began on Tuesday and ended early this morning.
The Federal Reserve (Fed) is expected to continue to discuss asset purchase reductions and investors will be looking for clear clues as to when policymakers will start implementing them.
Still, the uncertainty caused by the escalation of Covid-19 cases following the spread of Delta variants around the world, may provide good reason for Fed officials to consider slowing the timeline to reduce asset purchases.
