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Gold Down, but Moves Small Ahead of Fed Policy Decision By


© Reuters.

By Gina Lee – Gold was down on Tuesday morning in Asia. Investors were taking a risk-averse stance, however, ahead of the and ongoing debt crisis.

By 12:14 ET (4:14 GMT), the price had fallen 0.08%, to $1762.35 The yellow metal recovered some of its losses after Monday’s close, where it was at an all-time low for over a month.

China Evergrande’s debt crisis continues on investors’ radars as an $83.5 million interest payment for its March 2022 bond is due on Thursday and a second $47.5 million interest payment for its March 2024 notes is due not long afterward on Sep. 29.

The developer has around $300 billion worth of debts. It is still uncertain if it can pay the bills.

Investors also await clues on the Fed’s timetable to begin asset tapering and hike interest rates in the central bank’s policy decision, due to be handed down later in the day.

Meanwhile, the volume of the European Central Bank (ECB)’s bond purchases is becoming “less important” as the economic outlook improves and the money-printing scheme becomes a tool for guiding rate expectations, ECB board member Isabel Schnabel said on Monday.

The and will hand down their respective policy decisions on Wednesday and Thursday.

Other precious metals saw silver gain 0.1% following a nearly nine-month-old low of $22.01 at the previous session. After falling to its lowest point since June 2020, palladium rose 0.6% to $1.896.30. Platinum surged 0.5% to $915.05 following a 10 month low.

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