Gold dropped from its six-week highs on Tuesday, trimming recent gains as investors speculate over the impact the recent bullish streak may affect physical demand for the metal. Market participants are keeping a close eye on the next US Federal Reserve (Fed) meeting which has also sparked speculations.
Gold deliveries for February delivery came in at 0.07% to $1,252.80 an ounce on New York’s Comex at the time of writing after climbing to $1,262.00 an ounce on Monday, the highest since December 11. At the same time silver futures lost 0.56% to $20.190 an ounce.
Meanwhile in China, which possibly overtook India as the world’s largest consumer last year; physical demand for the metal strengthened and lifted the gold from a six-month low of $1.181.40 on December 31.
Gold – US Federal Meeting
Members of the Federal Open Market Committee (FOMC) are expected to meet for the next policy meeting scheduled for January 28-29. In the last fed-meeting, the central bank decided to reduce its monthly bond purchases by $10 billion to $75 billion a month.
Investors are expecting the Federal Reserve to scale-back its monthly bond purchases even further at its next meeting, after the release of the non-farm payrolls data came in lower than expected.
“We’re likely to continue on a path of gradual, measured reductions in the pace of purchases, assuming the economy tracks as we expect it to,” San Francisco Fed President John Williams said in an interview earlier in the month.
Win a luxurious trip to the Maldives & up to $30,000 cash for trading with us!
Visit for details http://ift.tt/L42Q3q
The post Gold Prices Drops from Six-Week High appeared first on | HY Markets Official blog.
Article provided by HY Markets Forex Blog
