Gold may advance, rebounding from the biggest drop in four weeks, as the U.S. central bank is set to release interest-rate forecasts for the first time, weakening the dollar and boosting commodities demand.
Spot gold was little changed at $1,666.32 an ounce at 9:53 a.m. inSingapore after rising as much as 0.4 percent earlier. The precious metal dropped 0.7 percent yesterday, the most since Dec. 28. Gold for February delivery was also little changed at $1,666.20 an ounce on the Comex in New York.
The dollar traded near the lowest level in three weeks against the euro before the Federal Reserve Open Market Committee releases the forecasts later today. That helped to drive Asian stocks, copper and oil higher.
“It’s all about the dollar,” said Nick Trevethan, an analyst at Australia & New Zealand Banking Group Ltd. “This is the first time the FOMC is giving its forecast, and I think people are keen to see what it looks like.”
Cash silver climbed as much as 0.6 percent to $32.2475 an ounce, before trading at $32.10. Spot platinum fell for a second day after touching the highest level since Dec. 2 yesterday, dropping 0.4 percent to $1,544.75 an ounce.
Palladium was little changed at $681 an ounce, after reaching a four-month high yesterday. The Shanghai Futures Exchange is closed for the Lunar New Year holiday.
