Gold prices stable amid expectations of Fed actions

Gold prices on November 16 morning remained almost unchanged, Report informs referring to the auction data.

Markets continue to evaluate further measures by the US Federal Reserve System (FRS) on the rate, also paying attention to the events in Poland.

The price of December futures for gold on the New York Comex exchange fell by $0.1, or 0.01%, to $1,776.7 per troy ounce. December silver futures rose 0.29% to $21.58 an ounce.

Traders continue to assess the Fed’s next steps on the rate. The next meeting is scheduled for mid-December, and markets are largely pricing in a slowdown in the rate hike to 50 from 75 basis points in light of a gradual slowdown in US annual inflation.

Gold is sensitive to signals from the Fed, since the regulator's monetary policy decisions affect the dollar, which, in turn, affects gold. The more expensive the dollar, the less gold is available for purchase in another currency and the less demand for the precious metal. The weakening of the US currency, on the contrary, supports the price of gold.

At the same time, bidders are following developments in Poland. Earlier, the Polish media reported about the fall of two missiles on the territory of the country. Investors fear that these events may cause an escalation of geopolitical tensions in the world.