Gold futures fell on Wednesday as investors await the outcome of a Federal Reserve meeting, which is not expected to lead to policy changes but will be combed for interest rate hikes and asset purchases.
Read: Fed to stay inappropriate this week while Powell channels his inner calm Gary Cooper
Gold for delivery April GC00,
GCJ21,
fell $ 4.40 or 0.3% to $ 1,726.50 an ounce on Comex. Silver SIK21,
decreased 12.3%, s or 0.5%, to $ 25.88 per ounce.
“Gold remains in the ‘wait and see’ mode before the Fed’s latest economic projections,” Carlo Alberto De Casa, chief analyst at ActivTrades, said in a statement.
The Fed is not expected to make changes in interest rates or asset purchases, but investors are eager to see the central bank’s latest projections on the economic outlook and the long-term forecast of interest rates in the so-called “conspiracy point”. ”. Expectations for an increase in economic growth, as vaccine launches finally quell the pandemic and another $ 1.9 trillion round of COVID aid spending increases raised inflation expectations.
See: What would make the Fed take a return? Hint: much more than some high inflation values
Bullion continues to play with resistance at $ 1,730, with low volatility, De Casa said.
“Technically, a clear rise above $ 1,740 would open up room for additional gains, while a decline below the $ 1,700 mark will show weakness,” he said.