By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures traded lower Wednesday as investors awaited the U.S. Federal Reserve’s interest-rate decision and press conference by Chairman Ben Bernanke.
Gold for June delivery GCM2 -0.20% retreated $4.50, or 0.3%, to $1,639.40 an ounce on the Comex division of the New York Mercantile Exchange. The metal had earlier wavered between small gains and losses.
The Fed is expected to keep rates on hold and be mum on any hints about further economic stimulus.
That is unlikely to stop gold investors from looking for any hints.
Gold has been rangebound for the better part of two weeks, unable to rise much above $1,650 an ounce and finding support at $1,600 an ounce.
Tuesday’s weak housing data spurred some hopes the Fed may be getting closer to announcing another round of quantitative easing, and gold rose 0.7%.
Some analysts fretted, however, that time may be running out for such an announcement, with Fed officials unlikely to make a decision as the U.S. presidential election approaches.
Gold is seen as a store of wealth and a safe haven; it does well amid inflation and currency concerns and any hints of quantitative easing would push prices higher.
Other precious and base metals futures turned mixed, with some finding support on firmer equities and others tracking gold lower.
May copper futures HGK2 +0.64% added 3 cents, or 0.8%, to $3.70 per pound. Platinum for July delivery PLN2 +0.03% advanced $2.30, or 0.2%, to $1,550.40 an ounce.
Silver tracked gold lower, however, giving back some of its recent gains. May silver futures SIK2 -1.50% declined 53 cents, or 1.7%, to $30.21 an ounce. The metal on Tuesday gained 0.7%.
U.S. stocks opened higher on the heels of better-than-expected earnings for heavyweight stock Apple Inc. AAPL +9.03% . Read more about U.S. stock trading.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
