Gold prices were subdued on Wednesday, the dollar held steady and the 10-year Treasury yield topped 2.16 percent as investors await the U.S. Federal Reserve’s policy decision later in the day.
Spot gold held steady at $1,918.57 per ounce, while U.S. gold futures were down half a percent at $1,919.95.
Risk sentiment improved in financial markets after China pledged support for its slowing economy.
Shares of Alibaba Group Holdings and Tencent Holdings saw a reprieve from recent heavy selling today after China’s government tried to reassure jittery investors by promising support for its struggling real estate industry, internet companies and entrepreneurs.
The Federal Reserve concludes a two-day policy meeting later today amid expectations it will hike its benchmark rate by 25 basis points for the first time in three years to control high inflation.
Along with the Fed decision and geopolitical news flow, trading later in the day may be swayed by U.S. retail sales and export and import price numbers, all for February, business inventories data for January and NAHB housing market index for March.