The precious metal traded slight lower during the Asian trading hours on Wednesday , holding close to a $1,360 mark , while investors awaits the conclusion from the Federal Open Market Committee (FOMC ) meeting ,later today .
The gold futures for August traded on the Comex division of the New York Mercantile Exchange fell to a low 0.13% to $1,365.10 per ounce as of 5:26am GMT ,at the same time the silver futures for July were 0.70% lower to $21.525 per ounce.
Investors are focused on the Federal Reserve (Fed) plans on when the central bank may begin to reduce its monthly stimulus with the recovering economy.
“Gold remains under pressure amid uncertainty about the Fed’s asset-purchase program,” Mumbai-based Kotak Commodity Services Ltd. said today in a report. “Any sign of curtailment in asset purchases will be negative for gold; however it has been factored in to some extent.”
Holdings from the SPDR Gold Trust, the largest gold-backed exchange-traded fund, lowered 1,001.96 tonnes on Tuesday. Holdings lowered to its lowest level since March 2011.
Investors cut down their holdings in the exchange-traded funds last week for the 17th week, while assets went down to more than 11 tons.
Physical demand from two of the world’s largest gold consumers, India and China, has reached peak levels when gold prices fell in April. Demand in India lowered after the government of India imposed a 2% import tax on gold.
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