Gold futures fell on Wednesday as investors await the outcome of a Federal Reserve meeting that is not expected to bring about policy changes, but will be combed to get clues on the path to interest rates. interest and the purchase of assets.
Read: The Fed will remain impoverished this week as Powell channels its inner calm of Gary Cooper
Gold for the April delivery GC00,
CGJ21,
it fell $ 4.40, or 0.3%, to $ 1,726.50 an ounce on Comex. May silver SIK21,
fell 12.3 cents, 0.5 percent, to $ 25.88 an ounce.
“Gold remains in‘ 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 changes in interest rates or asset purchases, but investors are eager to see the central bank’s latest projections on the economic outlook and the long-term path of interest rates. of interest in the so-called “dot plot”. ”. Expectations of increased economic growth as vaccine deployment finally suffocates the pandemic and another $ 1.9 trillion COVID aid round increases spending that has raised inflation expectations.
See: What would cause the Fed to make a change of direction? Tip: Much more than some high inflation readings
Bullion continues to play with $ 1,730 resistance with low volatility, De Casa said.
“From a technical standpoint, a clear rise above $ 1,740 would open up room for more gains, while a fall below the $ 1,700 mark will show weakness,” he said.