Gold increased marginally on Tuesday, January 25, 2022. Investors in the commodity market await the U.S. Federal Reserve’s policy decision as interest rate hikes takes center stage, worries also persists regarding tensions in Eastern Europe as it affects the price of gold.
Gold prices rose marginally to $1,841.80 by 0.01% as at 3.50 AM GMT
As the tension between the United States and Russia continues over Ukraine, U.K. also said it was withdrawing some staff and dependents from its embassy in Ukraine, a day after the U.S. said it was ordering diplomats’ family members from its own embassy
The U.S stock market has experienced some normalcy after a disruptive trading session on Monday. Steep sell off and ensuing bargain hunting primarily pushed the stock index. Benchmark U.S. 10-year Treasury yields tumbled to a one-week low on Monday.
Investors’ focus is now on the Fed policy decision, due to be implemented on Wednesday after a two-day meeting. It is widely expected that the U.S. central bank will indicate that it plans to hike interest rates by 25 basis points in March 2022.
The Bank of Canada will also implement its own policy decision on the same day as the Fed, while the South African Reserve Bank will hand down its policy decision on Thursday.
The Republic of Sudan will improve its use of gold exports to cover imports of essential goods. The country is embarking on a new 2022 budget without foreign aid.