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Gold futures edged lower Wednesday as investors await the outcome of a Federal Reserve meeting that isn’t expected to result in policy changes, but will be combed for clues to the path of interest rates and asset purchases.
Read: Fed to stay dovish this week as Powell channels his inner Gary Cooper calm
Gold for April delivery
GC00,
-0.09%
GCJ21,
-0.09%
was down $4.40, or 0.3%, at $1,726.50 an ounce on Comex. May silver
SIK21,
-0.20%
was down 12.3 cent,s or 0.5%, at $25.88 an ounce.
“Gold remains in ‘wait-and-see’ mode ahead of the Fed’s latest economic projections,” said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.
The Fed isn’t expected to make any tweaks to interest rates or asset purchases, but investors are eager to see the central bank’s latest projections on the economic outlook and the forecast long-term path of interest rates in the so-called “dot plot”. Expectations for a surge in economic growth as vaccine rollouts finally quell the pandemic and another $1.9 trillion round of COVID aid boosts spending have lifted inflation expectations.
See: What would cause the Fed to take a U-turn? Hint: a lot more than some high inflation readings
Bullion continues to toy with resistance at $1,730 with low volatility, De Casa said.
“From a technical point of view, a clear climb above $1,740 would open space for further gains, while a decline below the $1,700 mark will show weakness,” he said.
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