COMEX Gold futures edged up further today after breaking above $1300 per ounce as the sentiments remained supported ahead of the US Federal Reserve’s monetary policy meet outcome tomorrow. The US dollar has been under stress recently and the dollar index fell to a three week low of 95.70 today. There is some speculation about the Fed turning even more defensive in its monetary approach after saying that it will be patient in raising the rates. A recent update from the Dallas Fed has noted that nonfinancial corporate bonds outstanding in the US grew from approximately $2.2 trillion in 2008 to approximately $5.7 trillion at year-end 2018. The bulk of this growth occurred in the investment-grade sector.

The amount of outstanding US investment-grade nonfinancial corporate bonds grew from approximately $1.5 trillion in 2008 to $4.5 trillion at year-end 2018. The update also says that an elevated level of corporate debt, along with the high level of US government debt, is likely to mean that the US economy is much more interest rate sensitive than it has been historically. This has been weighing on the dollar and is in turn supporting the yellow metal. COMEX Gold currently trades at $1309 per ounce, up 0.60% on the day. MCX Gold futures are currently trading at Rs 31980 per 10 grams, up 1% on the day.

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