Gold prices were able to rise during the Asian session Wednesday to make up for part of the losses recorded yesterday, the recovery comes at the expense of the dollar's depreciation against major currencies before the Fed's meeting.
The US dollar was able to rise against major currencies yesterday, amid the expectation that the Fed was on its way to raise interest rates during its meeting this week, which supported the movements of the dollar.
Financial markets began to witness a recovery in the demand for goods and stocks during today's session, after a state of risk aversion dominated investors during the previous period, during which we saw a rebound in market demand for bond markets as a safe haven in financial markets.
The main reason behind this is the growing expectation that the Fed is on the way to raise interest rates during its meeting this week, which is detrimental to commodity markets since gold does not provide a return to its possessors but is merely a store of value.
Gold prices are currently traded at the level of $1313.42 for the ounce, after registering the lowest level at $1309.86 per ounce, and it opened today's meeting at the level of $1310.71 per ounce, registering the highest level at $1314.07 per ounce.