Gold prices were seen trading lower on Wednesday before the US Federal Reserve (Fed) concludes its two-day policy meeting later in the day and investors weigh on the ongoing tensions in Iraq.
Bullion for immediate delivery slid 0.31% lower to $1,268.60 an ounce at the time of writing. Prices for gold rose to $1,284.96 on June 16, the highest since May 27. Last week the tensions in Iraq and the ongoing violence between Ukraine and Russia boosted gold prices.
Gold for August delivery fell 0.2% to $1,269.20 an ounce on the Comex in New York. Silver eased 0.24% at $19.685 an ounce at the time of writing.
The market pointed renewed outflows from SPDR Gold Trust, as the total volume of the yellow metal came in at 782.62 tones at the time of writing.
Gold – Iraq
The situation in Iraq remains in the spotlight as the tensions worsened over the weekend and Islamic militants took control of the city of Tal Afar, where most of the country’s oil fields are based as conflict sparked between Islamic Sunni militants and the central government on Monday.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
The US has said it will send 275 troops to Iraq to protect and support US personnel and the embassy in the nation’s capital, Baghdad.
Officials from the US resumed talks with the Iranian government on how to ease tensions in Iraq.
Fed Meeting
The Federal Reserve will be concluding its two-day monthly policy meeting later in the day, with the market predicting that the central bank will continue to taper its asset purchases by $10 billion a month, which will cut the monthly bond purchases to $35 billion. The central bank is expected to maintain its interest rate at zero lower bound; between 0% and 0.25%.
The Federal Open Market Committee is also expected to post its economic forecasts and interest rate estimates.
Deposit $100 get $100 absolutely FREE! Register with HY Markets today.
The post Gold Prices Falls before Fed Meeting Conclusion appeared first on | HY Markets Official blog.
