BLBG:Gold Seen Falling in London Before Federal Reserve’s Decision
Gold may drop for a second day in London as investors wait for the Federal Reserve’s decision on monetary policy.
The central bank decides whether to add further stimulus when it concludes a two-day meeting today. Gold jumped 2.1 percent on Sept. 7 on speculation of more stimulus after U.S. hiring weakened in August fell.
“People have priced in quantitative easing and the disappointment factor is very high,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. “If this quantitative easing does not materialize, you’d surely see prices fall.”
Gold for immediate delivery dropped less than 0.1 percent to $1,730.25 an ounce by 8:23 a.m. in London. The metal reached a six-month high of $1,746.90 yesterday. Holdings in bullion- backed exchange-traded products expanded to a record 2,489.1 metric tons yesterday, data compiled by Bloomberg show.
To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net Claudia Carpenter in London at ccarpenter2@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
