Gold prices are down in trading today as investors remain on the sidelines ahead of the release of Federal Reserve’s monetary policy statement later today. Meanwhile, silver prices are marginally higher in trading currently. A series of weak economic data has raised prospects of further monetary easing from the Federal Reserve. The Fed is likely to extend its Operation Twist program, which expires at the end of this month. It will be interesting to see to if the Fed hints at additional measures to boost the economy. Ahead of the monetary policy statement, spot gold prices are down 1% to $1,601 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange are currently trading 0.96% lower at $1,607.60 an ounce. In a research note, HSBC today said that if the FOMC were to decline to hint at further easing, this could undermine gold, but even if bullion should drop, the price will hold above $1,600 an ounce. Silver prices have edged higher in trading today; however, the gains have been marginal. At last check, spot silver was trading 0.21% higher at $28.44 an ounce.

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