Gold futures pared gains and settled roughly flat on Wednesday as the dollar recovered lost ground and moved slightly higher ahead of the Federal Reserve’s interest rate decision.
The Fed is widely expected to raise interest rates by another 75 basis points, the fourth such increase in a row, as it fights the worst inflation in four decades.
Investors are waiting for signs that the U.S. central bank is prepared to slow the pace of its rate hikes come December.
The dollar index, which dropped to 111.08 earlier in the session, rose to 111.60 past noon, and was at 111.50 a little while ago, netting a small gain.
Gold futures for December rose to a high of $1,662.00 an ounce but dropped to $1,648.60 before settling at $1,650.00 an ounce, just $0.30 up from the previous close.
Silver futures for December ended down $0.073 at $19.594 an ounce, while Copper futures for December settled at $3.4685 per pound, down $0.0040 from the previous close.
A report released by payroll processor ADP showed private sector employment in the U.S. increased by more than expected in the month of October.
ADP said private sector employment jumped by 239,000 jobs in October after climbing by a downwardly revised 192,000 jobs in September.
Economists had expected private sector employment to advance by 195,000 jobs compared to the addition of 208,000 jobs originally reported for the previous month.
The Bank of England’s interest rate decision is due on Thursday. The BoE is widely expected to raise its benchmark rate by 75 basis points.
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