Gold Volatility Rises as Fed Seen Delaying Interest-Rate Liftoff

28-Apr (Bloomberg) — Gold traders are going cross-eyed waiting for more guidance from the Federal Reserve on when policy makers plan to raise interest rates.

The metal’s 30-day volatility is near the highest in seven weeks. Futures on Tuesday swung between gains and losses, before climbing. Economists surveyed by Bloomberg News expect that the Fed’s long-awaited liftoff on its benchmark interest rate won’t happen until September. Officials will issue a policy statement at the end of a two-day meeting on Wednesday.

Investors in March sold the most gold from exchange-traded products since December 2013, partly in anticipation of higher rates that spur traders to favor assets with better yield prospects, such as equities. Recent signs of uneven U.S. economic growth have damped speculation that rates will rise soon, and assets in bullion ETPs are heading for a monthly gain in April.

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