Gold futures fell somewhat lower on Wednesday as investors await the outcome of a Federal Reserve meeting that is not expected to trigger policy changes, but will be scoured for clues as to the path of interest rates and asset purchases.
Read: Fed to stay subdued this week while Powell calms his inner Gary Cooper
Gold for delivery in April GC00,
GCJ21,
was down $ 4.40 or 0.3% to $ 1,726.50 an ounce on Comex. May silver SIK21,
fell 12.3 cents, or 0.5%, at $ 25.88 an ounce.
“Gold remains pending the latest Fed economic projections,” Carlo Alberto De Casa, principal analyst at ActivTrades, said in a note.
The Fed is not expected to adjust interest rates or asset purchases, but investors are curious about the central bank’s latest projections on the economic outlook and the long-term forecasted path of interest rates in the so-called ‘dot plot’. ”. Expectations for a surge in economic growth as vaccine rollouts finally quell the pandemic and another round of $ 1.9 trillion in COVID support boosts spending has lifted inflation expectations.
See: What would cause the Fed to turn around? Hint: much more than a few high inflation numbers
Bullion continues to play with low volatility resistance at USD 1,730, De Casa said.
“From a technical standpoint, a clear climb above USD 1,740 would make room for further gains, while a decline below USD 1,700 would be weakness,” he said.