Gold futures rose lower on Wednesday as investors await the outcome of a Federal Reserve meeting that is not expected to bring about policy changes, but that will look for clues in the way of interest rates and asset purchases.
Read: Fed will remain dove this week as Powell calmly channels his inner Gary Cooper
Gold for delivery in April GC00,
GCJ21,
dropped $ 4.40, or 0.3%, to $ 1,726.50 per ounce on Comex. Mag silver SIK21,
was 12.3 cents, s or 0.5% lower, at $ 25.88 per ounce.
“Gold remains in wait-and-see mode ahead of the Fed’s latest economic forecasts,” CarT Alberto De Casa, chief analyst at ActivTrades, said in a note.
The Fed is not expected to adjust interest rates or asset purchases, but investors are eager to see the central bank’s latest forecasts on the economic outlook and the predicted long-term interest rate route in the so-called ‘dot plot’. ”. The expectation of an increase in economic growth as the explosion of vaccines finally suppresses the pandemic, and another round of $ 1.9 billion COVID assistance has raised inflation expectations.
See: What would cause the Fed to take a turn? Tip: much more than some high inflation readings
Bullion is still playing resistance at $ 1,730 against low volatility, De Casa said.
“From a technical point of view, a clear climb above $ 1,740 would allow for further gains, while a decline below the $ 1,700 point would show weakness,” he said.