Gold rebounds towards $4400 as Fed decision looms

Gold climbed back towards $4400 an ounce in Wednesday?s electronic trades as investors repositioned ahead of the Federal Reserve?s latest policy decision and updated economic projections. The dollar index hovering near 99.3, close to a one-month high, while expectations of a 25-basis-point rate hike have largely been priced in. Market attention is now shifting towards the Fed?s forward guidance, particularly the possibility of another increase in October or December, as policymakers remain focused on containing persistent inflationary pressures. Recent remarks from Chair Warsh at Jackson Hole also underscored the Fed?s cautious stance on underlying inflation. MCX October bullion futures advanced nearly 1% to ₹151,885 per 10 grams.

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