Make Kitco Your Homepage

Gold price holds strong gains above 2% after nonevent Federal Reserve meeting

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold prices continue to hold near its highest level in six weeks as the Federal Reserve reveals little new information on monetary policy.

In line with expectations the Federal Reserve left interest rates at its zero-bound range. The Fed also noted that economic activity continues to improve but remains well below levels seen at the start of the year.

The Federal Reserve’s monetary policy statement was virtually unchanged from its September meeting.

“The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the central bank said in its monetary policy statement, reiterating its stance from previous meetings.

Gold prices are not seeing much reaction to the central bank’s comments, which were widely in line with expectations. December gold futures last traded at $1,947.20 an ounce, up 2.70% on the day.

Heading into the meeting, economists at analysts have said that they weren’t expecting much as the meeting comes in the midst of the U.S. General Election. Although Democratic nominee Joe Biden currently leads in Electoral College votes, a number of states are still counting votes.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.