IV:Gold futures hold steady near 3-week high ahead of Fed decision
Investing.com - Gold futures were little changed near the previous session’s three-week high on Wednesday, as investors looked ahead to the outcome of the Federal Reserve’s policy meeting later in the day.
Uncertainty remained over the situation in Cyprus, where the country’s parliament rejected a proposed bank deposit tax, which formed part of a EUR10 billion international bailout deal.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,610.60 a troy ounce during European morning trade, nearly flat on the day.
Prices held in a tight USD5-trading range between USD1,609.70 a troy ounce, the daily low and a session high of USD1,613.90. Comex gold prices rose to USD1,614.60 a troy ounce on Tuesday , the strongest level since February 26.
Gold prices were likely to find support at USD1,560.60 a troy ounce, the low from March 8 and near-term resistance at USD1,619.40, the high from February 26.
Market players were looking ahead to the outcome of the Federal Reserve’s two-day policy meeting, as investors try to assess the central bank's attitude towards monetary stimulus.
Data on Friday showed that U.S. inflation was contained in February, leaving the way clear for the central bank to continue its bond-buying program.
Fed Chairman Ben Bernanke is to give a press conference after the release of the policy statement.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing to an end this year.
Meanwhile, concerns over a highly criticized bailout plan for Cyprus continued to enhance the safe haven appeal of the precious metal.
Cyprus’s President Nicos Anastasiades called an emergency meeting with political leaders to look at alternatives after parliament rejected the terms of the bailout agreement in a vote Tuesday.
Following the vote, the European Central Bank said it will provide liquidity to Cypriot banks within existing rules.
German Finance Minister Wolfgang Schaeuble warned Cyprus that its banks might never be able to reopen if it rejected the bailout.
Elsewhere on the Comex, silver for May delivery added 0.25% to trade at USD28.91 a troy ounce, while copper for May delivery rose 0.8% to trade at USD3.433 a pound.
