Gold futures declined from a five-week high as the dollar’s rally curbed demand for the metal as an alternative investment before Federal Reserve policy makers meet on U.S. monetary policy.
The greenback rose to a one-week high against a basket of 10 currencies as the Fed begins a two-day policy meeting. Wholesale prices unexpectedly dropped in September, curbing the appeal of gold as a hedge against inflation. Energy futures also fell today.
“A lack of fresh, bullish fundamental news is keeping buyers scarce,” Jim Wyckoff, a senior analyst at Kitco Inc., a research company in Montreal, said in a report. “The key ‘outside markets’ are also in a bearish daily posture for the precious metals — a firmer U.S. Dollar Index and weaker crude-oil prices.”
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