Gold prices dropped for a third straight session on Wednesday, as the market waits for the conclusion of the US Federal Reserve’s (Fed) March policy meeting later in the day, as the situation in Ukraine continues to be in the spotlight.
Gold futures for April delivery edged 0.27% lower to $1,355.40 an ounce at the time of writing, while silver futures declined 0.11% to $20.840 an ounce at the same time.
Holdings in the world’s largest bullion-backed exchange-traded fund, SPDR Gold Trust; came in at 812.78 tons on Tuesday.
Gold – Fed Meeting Conclusion
The Federal Reserve’s March policy meeting continues on Wednesday and expected to conclude the meeting later in the day. Following the cuts of $10 billion at the prior two meetings, analysts are expecting the central bank to continue to reduce its monthly bond purchases by another $10 billion to $55 billion and continue that pace at every meeting before ending the program at its October 28-29 policy meeting.
The Fed Chair Janet Yellen will be holding a press conference after the meeting.
Gold – Ukraine
On Tuesday, the Russian President Vladimir Putin signed a treaty making the Crimea peninsula officially a part of the Russian Federation.
As the Western nations, including the US and the European Union assured more sanctions on Russia for his drive to annex Crimea.
The tension in Ukraine continues to boost gold prices, making the precious metal a safe haven asset as gold has risen by 13% this year.
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