Gold prices moved within a narrow range on Wednesday as some investors hesitated to trade while awaiting the U.S. Federal Reserve's decision on interest rates and clarification regarding the future of monetary policy. Spot gold stabilized at $1940.11 per ounce after a 2% drop on Tuesday. U.S. gold futures rose 0.1% to $1942.10.
In this context, Christopher Wong, a strategist at OCBC, affirmed that "the market is experiencing rapid developments, but it seems that the wounds of the banking sector are beginning to heal after the emergency support packages and assurances from authorities, and gold is declining as demand eases."
The metal recently surged by 10%, or around $180, reaching its highest levels in a year due to increased demand following the collapse of Silicon Valley Bank and the crisis at Credit Suisse. However, prices have stabilized since the rescue of Credit Suisse revitalized risk appetite, despite ongoing uncertainty regarding the financial system.
