IV:Gold futures little changed near 4-week low ahead of Fed decision
Investing.com - Gold futures were little changed near a four-week low on Wednesday, as investors stuck to the sidelines ahead of the Federal Reserve’s monetary policy decision later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,367.45 a troy ounce during European morning hours, nearly flat on the day.
Comex gold prices held in a tight range between USD1,364.15 a troy ounce, the daily low and a session high of USD1,369.65 a troy ounce.
Gold futures were likely to find near-term support at USD1,355.55 a troy ounce, the low from May 23 and resistance at USD1,394.25, the high from June 13.
Gold prices lost more than 1% on Tuesday to hit USD1,360.25 a troy ounce, the weakest level since May 23, on concerns the Federal Reserve could taper down its bond purchases.
Investors remained cautious amid speculation over whether the Fed will begin to scale back its easing program after Chairman Ben Bernanke said last month the bank could begin to taper asset purchases if the economy continued to improve.
Attention will focus on Bernanke’s press conference following the decision, which investors are hoping will provide further clues on how long the central bank will maintain its USD85-billion-a-month in bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere on the Comex, silver for July delivery eased down 0.2% to trade at USD21.63 a troy ounce, while copper for July delivery added 0.25% to trade at USD3.163 a pound.
