Gold Trades Lower ; FOMC Meeting In Spotlight

By HY Markets Forex Blog

Gold futures were seen trading below the $1,300 threshold on Tuesday, while US reported an upbeat housing data and investors focus on the two-day monthly policy meeting held by the US Federal Reserve (Fed) which will begin later in the day.

Bullion futures for June delivery edged 0.78% lower to $1,289.10 an ounce on the New York Comex at the time of writing, while silver futures fell 1.02% to $19.420 an ounce at the same time.

FOMC Meeting

Investors will be focusing on the outcome of the Federal Reserve two-day monthly policy meeting which will begin later in the day, with predictions that the Federal Reserve will announce another cut to its stimulus for the fourth time in a row.

Meanwhile, US Federal Reserve Chair Janet Yellen is expected to give a speech at the Independent Community Bankers of America’s Annual Policy Summit on Thursday.

Investors will also be focusing on the release of the non-farm payrolls figures due Friday, with estimates of 210,000 additional new jobs, compared to the previous figure of 192,000.

Gold’s net-long status climbed by 0.5% to 90,572 futures and options in the week ending April 22, the first rise since March 18, reports from the US Commodity Futures Trading Commission showed.

Gold has climbed by 8% this year, bouncing back from the 28% drop seen last year and boosted by the sustained physical demand. . “Although it is difficult to predict gold prices over short term, yet the increasing geo-political risks and increasing profit-taking pressure in US market are very visible and obvious as of now, hence fueling near-term positive sentiments towards gold price and gold stocks,” Helen Lau, a senior analyst at UOB Kay Hian (Hong Kong) Research, wrote in a note.

 

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