Gold futures fell on Wednesday, with investors awaiting the outcome of a Federal Reserve meeting that is not expected to result in policy changes, but will be scrutinized for clues about the path of interest rates and asset purchases.
Reading: Fed to remain peaceful this week while Powell channels his inner calm to Gary Cooper
Gold for April delivery GC00,
GCJ21,
fell $ 4.40, or 0.3%, to $ 1,726.50 an ounce at Comex. May SIK21 silver,
fell 12.3 cents, s or 0.5%, to $ 25.88 an 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 note.
The Fed is not expected to make any adjustments to interest rates or asset purchases, but investors are eager to see the central bank’s latest projections on the economic outlook and the outlook for the long-term path of interest rates in the so-called “ point graph ”. Expectations of a sudden spike in economic growth as the launch of vaccines finally suppresses the pandemic and another round of $ 1.9 trillion in spending on increased COVID aid have raised inflation expectations.
To see: What would make the Fed turn around? Tip: much more than some high inflation readings
Gold continues to play with resistance to $ 1,730 with low volatility, said De Casa.
“From a technical point of view, a clear rise above $ 1,740 would make room for additional gains, while a fall below the $ 1,700 mark would show weakness,” he said.