Gold Prices Awaiting Fed’s Meeting for Direction

Gold held steady in Asian trading on Monday as investors awaited indications from a key U.S. Federal Reserve meeting later this week on the outlook for the central bank’s bond buying programme.

The Fed meets on June 18-19 against a backdrop of stronger-than-expected data on U.S. retail sales and the job market, with markets looking for clues to any tapering of its economic stimulus programme.

“The markets are a little bit fatigued at the moment,” said Victor Thianpiriya, commodities analyst at Australia and New Zealand Banking Group. “They are still looking for direction from the Fed meeting. That’s clearly the big driver this week.”

Spot gold rose 0.02 percent to $1,390.41 an ounce by 0319 GMT. Bullion closed up about 0.5 percent for the week on Friday helped by strong demand for coins and bars, a pullback in U.S. stocks and rising tensions in the Middle East.

Reuters

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