Gold futures fell on Wednesday as investors await the outcome of a Federal Reserve meeting that is not expected to lead to policy changes, but which will be scrutinized for clues about the trajectory of interest rates and asset purchases.
Read: Fed to remain subdued this week as Powell channels his inner Gary Cooper calm
Gold for April delivery GC00,
It was down $ 4.40, or 0.3%, to $ 1,726.50 an ounce on Comex. May silver SIK21,
it was down 12.3 cents, or 0.5%, to $ 25.88 an ounce.
“Gold remains in ‘wait and see’ mode ahead of the latest Fed 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 latest projections from the central bank on the economic outlook and the expected long-term trajectory of interest rates. in the so-called “dot plot”. ”. Expectations of increased economic growth as vaccine launches finally quell the pandemic and another $ 1.9 trillion round of COVID aid boosts spending have raised inflation expectations.
Watch: What would make the Fed turn 180 degrees? Hint: much more than a few high inflation readings
The bullion continues to play off the $ 1,730 resistance with low volatility, De Casa said.
“From a technical point of view, a clear rise above $ 1,740 would open room for further gains, while a drop below the $ 1,700 mark will show weakness,” he said.