Gold futures were trading lower on Tuesday, ahead of the first day of the two-day meeting of the Federal Reserve that is expected to see policy makers make plans to start reducing their monthly bond purchases.
“The market expects the Federal Reserve to announce its gradual strategy on Wednesday,” Peter Grant, chief metals analyst at Zaner Metals LLC and Tornado Precious Metals Solutions, said in a note.
is reading: The Federal Reserve saw the start of ‘tapping’ in bond purchases this week
“If this is indeed the case, and the first step in a long-term tightening strategy is about to take place, I would say gold is very buoyant. I think the Fed’s initial move to tapering would be a temporary first step given the current risks to growth,” said Grant. “.
Gold for December delivery GC00,
It was down $6.10, or 0.3%, at $1,789.70 an ounce on Comex. Silver Dec SI00,
It fell 45.8 cents, or 2%, to $23.615 an ounce.
“Gold bulls remain trapped in sticky territory with the 200-day simple moving average and $1,800 acted as first resistance,” Lukman Otunuga, chief research analyst at FXTM, said in a note.
Far from this point, prices may test the October high of $1,813.67, ahead of $1,833.84, the September high. Ultimately, how gold ends the week will be affected by the Federal Reserve meeting and the US jobs report on Friday.
Among the other metals traded in Comex is DEC copper HGZ21,
Approximately 0.1% to $4,397 per pound.
Jan Platini PLF22,
It lost 1.9% to $1,047.30 an ounce and palladium PAZ21 for the month of December,
It fell 1.8% to $2,015.50 an ounce.