By Eddie Van Der Walt and Ranjeetha Pakiam
Gold traders are waiting for the Federal Reserve.
The metal was little changed in London before the Fed ends a policy meeting later Wednesday. A measure of bullion’s price moves are near the smallest since before the U.K.’s Brexit vote and trading volume for U.S. futures were about 20 percent below the 30-day average for the time of day.
Gold has climbed 24 percent this year, partly as the Fed indicated it would hold interest rates lower for longer. While it’s expected to keep rates unchanged today, traders see a 49 percent chance of an increase by December, up from just 12 percent at the start of the month. Markets will be closely watching for clues on the timing of future moves.
Gold will probably be “range bound in sideways trading” before the Fed announcement, Jonathan Butler, a precious metals strategist at Mitsubishi Corp. in London, said by e-mail. “It could move some way higher if we have some dovish comments from the Fed this evening.”