28.10.201423:14:21UTC+00Gold moves above lowest price in two weeks on Fed monthly meeting

Gold traded just above its lowest value in two weeks with investors weighing the strength of the US economy just as policy makers of the Federal Reserve concludes their latest committee meeting.

Spot gold alternated between gains and losses of at least 0.2% and traded at a price per ounce of $1,228.41 mid morning Singapore time, down from yesterday’s $1,228.52, based on generic pricing from Bloomberg. The precious metal fell to its lowest price since October 15th yesterday at $1,222.62, but bounced back after a report showed that orders for durable goods in the US surprisingly declined and pushed the Bloomberg Dollar Spot Index to its lowest for the week.

Officials of the US central bank are discussing when to schedule the first increase to its benchmark rates, which have been set from zero to 0.25 since 2008. Traders reduced bets on the hike being announced by October 2015 to only having a 50% chance instead of the original 79%. The Fed announced last month that it will end its bond buying program in October should the economy continue improving.

Analyst Lv Jie from China’s Cinda Futures Co. says that, “U.S. economic data remains mixed, keeping investors on the sidelines before the Fed meeting. Physical demand is quite good, lending some price support.”

Futures for gold with a delivery date in December traded slightly down at a price per ounce of $1,228.80 from yesterday’s $1,229.40. It reached its lowest since October 15th yesterday at $1,222.20 in New York’s Comex.

Holdings under the SPDR Gold Trust, the largest gold backed exchange traded product, decreased to the smallest since October 2008 at 743.59 metric tons. Data from the International Monetary Fund shows that Turkey and Russia expanded their gold reserves, while Mexico cut its holdings.

Spot silver increased by 0.3% to a price per ounce of $17.266. Platinum for immediate delivery traded up at $1,267.63 per ounce from $1,266.75, while palladium was mostly unchanged at $793.45 per ounce.