Gold prices fall as investors await Fed meeting

The gold prices They fell on Tuesday and the dollar strengthened, ahead of a meeting of the Federal Reserve (Fed) that investors will be watching for clues about the pace at which the United States central bank plans to withdraw the stimulus measures approved to face the pandemic.

At 09:23 GMT, spot gold was down 0.2% to $ 1,782.60 an ounce, while US gold futures were down 0.2% to $ 1,784.60.

“The strength of the dollar and the increase in real interest rates in the United States due to decreasing inflation expectations, measured by equilibrium inflation rates, are the factors that keep gold below US $ 1,800 an ounce”Said UBS analyst Giovanni Staunovo.

“Market participants will closely follow the upcoming Federal Open Market Committee meeting to see how the central bank reacts to high inflation, which will likely result in larger price movements.”He added.

The dollar held firm, limiting demand for bullion from buyers with other currencies. Meanwhile, the yield on US Treasuries rose slightly from the low of a week hit in the previous session, which also put pressure on gold.

The Fed will begin its monetary policy meeting two days later. It is expected to announce that it will end bond purchases, which could lead to interest rate hikes next year.

In other precious metals, silver fell 0.4% to US $ 22.21 an ounce; platinum fell 0.2% to $ 928.12; and palladium was up 0.3% at $ 1,685.77.

With information from Reuters.