Gold prices lifted from one-month low

NEW DELHI, June 15 (The Times of India): Gold prices were lifted on Wednesday from near one-month lows by weaker Treasury yields, ahead of a potentially aggressive interest rate hike from the US Federal Reserve as it seeks to combat inflation amid mounting fears of an impending recession.

Spot gold was up 0.5 per cent at $1,817.12 per ounce as of 0229 GMT, after dropping to its lowest since May 16 at $1,803.90 on Tuesday. US gold futures rose 0.3 per cent to $1,818.50.

The Federal Open Market Committee is expected to announce its decision on interest rates at 1800 GMT later in the day.

"In our opinion it is more likely to expect the gold price to rally before the session (Fed announcement), stay stable and then over the course of the following week continue its downward trend," said Michael Langford, director at corporate advisory AirGuide.

Investors have dramatically raised their bets that the Fed will raise interest rates by 75 basis points (bps) rather than 50 bps, a swing in expectations which has fuelled a violent selloff across world markets.