Federal Reserve decision is due at 2:15 p.m. Eastern time
By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures fell on Wednesday as investors waited for the outcome of the Federal Reserve policy meeting and doubts remained that hints of more stimulus will be forthcoming.
Gold for August delivery GCQ2 -0.80% retreated $15.70, or 1%, to $1,599.70 an ounce on the Comex division of the New York Mercantile Exchange.
The metal slipped in Tuesday’s session as investors began to worry about the possibility of additional stimulus efforts by central banks in the U.S. and Europe this week.
The U.S. Federal Reserve was anticipated to announce some easing measures at the conclusion of a two-day policy meeting later Wednesday, but analysts expect the central bank will hold off on more aggressive steps such as asset purchases. Read more on Fed expectations.
“If hopes are dashed, we see potential for correction in precious-metals prices,” analysts at Commerzbank said in a note.
The European Central Bank holds a policy meeting on Thursday, as does the Bank of England.
Monetary stimulus is a boost to gold prices as the metal is viewed as a safe store of value for investors and an alternative to devalued currencies.
The broader metals complex tracked gold lower on Wednesday. Metals linked to industrial uses were feeling the pinch of a mixed bag of manufacturing data in China. Two separate surveys showed employment and export orders as the weak spots in China’s economy. Read more about China's PMI.
September silver SIU2 -2.40% lost 73 cents, or 2.6%, to $27.19 an ounce. Copper for September delivery HGU2 -1.46% retreated 4 cents, or 1.1%, to $3.38 a pound.
September palladium PAU2 -0.82% dropped $8.40, or 1.4%, to $582.35 an ounce. Platinum for October delivery PLV2 -1.57% shed $26.60, or 1.9%, to $1,389.50 an ounce.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
Virginia Harrison is a MarketWatch reporter based in Sydney.
