Gold up as Fed prepares for asset tapering

Gold edged higher on Thursday in Asia, recovering from its three-week low. Investors mulled over a “patient” U.S. Federal Reserve’s latest policy decision as the central bank prepares to begin asset tapering this month.

Gold futures increased 0.68% to $1,775.95 by 11:44 PM ET (3:44 AM GMT). The dollar, typically moving inversely to gold, went up on Thursday.

The central bank handed its decision on Wednesday, with Fed Chairman Jerome Powell suggesting that interest rate increases are not to be expected anytime soon. However, Powell also added that “we think we can be patient. If a response is called for, we will not hesitate.”

Despite the Fed’s adamant stance that inflation is temporary, the smooth start to the central bank’s asset tapering program lifted shares around the globe.

Investors are now waiting for the Bank of England’s (BOE) policy decision, due within the day. The BOE is expected either to increase interest rates from an all-time low or to hold out until the post-lockdown economy is ready for such a move.

In other precious metals, silver and platinum went up 0.1% and 0.7%, respectively. Palladium rose 0.6% to $2,012.15.