Gold down to $1295 before Fed Meets

Gold retreated for a second day, trimming a monthly rise, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus as it starts a two-day policy meeting today.

Bullion for immediate delivery fell as much as 0.2 percent to $1,293.77 an ounce, and traded at $1,295.12 at 11:53 a.m. in Singapore. Prices are up 0.9 percent this month after dropping 3.2 percent in March, according to Bloomberg generic pricing.

Gold slid 28 percent in 2013 to end a 12-year winning run on expectations that the Fed would reduce stimulus as the world’s largest economy recovers. The central bank will probably trim its monthly asset purchases by another $10 billion to $45 billion, a Bloomberg News poll shows, after announcing cuts at each of the past three meetings. Bullion rose to two-week high yesterday amid unrest in Ukraine.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.