Home Economy PRECIOUS-Gold prices dip as dollar firms ahead of Fed decision

PRECIOUS-Gold prices dip as dollar firms ahead of Fed decision

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Nov 2 (Reuters) – Gold prices eased on Tuesday as a firmer dollar made bullion less appealing for holders of other currencies, while investors eyed a pivotal U.S. Federal Reserve policy meeting amid growing concerns over a sustained bout of inflation.

FUNDAMENTALS

* Spot gold was down 0.2% at $1,789.58 per ounce, as of 0158 GMT. U.S. gold futures dropped 0.2% to $1,791.50.

* The dollar index edged up 0.1% after declining 0.3% on Monday.

* The Federal Reserve’s two-day policy meeting concludes on Wednesday.

* Price and wage increases running at multi-decade highs may challenge the Fed as they try to maintain a balance between containing inflation and giving the economy as much time as possible to restore the jobs lost since the pandemic.

* U.S. manufacturing activity slowed in October, with all industries reporting record-long lead times for raw materials, indicating that stretched supply chains continued to constrain economic activity early in the fourth…

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