Gold prices were a little changed on Wednesday before the US Federal Open Market Committee’s (FOMC) announcement.
Gold futures for December delivery declined 0.2% to $1,227.40 an ounce on the Comex in New York, while the yellow metal for immediate delivery was a little changed at $1,227.74, according to Bloomberg generic pricing. Silver futures fell 0.2% to $17.19 an ounce.
FOMC Statement
With the US Federal Reserve in the spotlight, investors are expecting the FOMC to end to its monetary easing program by eliminating its remaining $15 billion worth of monthly asset purchases and keeping its key interest rate unchanged at 0.25%.
In September, the Fed said it would end its quantitative easing in October as the economy’s growth remains steady. Bookings for goods for the last three months fell 1.3% after the 18.3% fall in August, according to a report from the US Commerce Department.
Assets in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust declined 1.8 metric tons to 1,652.1 tons on Tuesday, marking a five year low. A data from the international Monetary Fund website showed that Russia and Kazakhstan were among the nations that added bullion to reserves in September.
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Meanwhile, on November 30, Switzerland voters will be voting in a referendum on gold, which could force the Swiss National Bank (SNB) to increase its gold reserves by tons of gold in the event of a yes vote.
“The market impact of a yes-vote would likely be quite spectacular,” said UBS strategist Beat Siegenthaler.
A yes vote in the gold referendum is expected to weigh on gold prices.
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