Gold prices fell on the European market on Wednesday, continuing to retreat for a second day in a correction from the highest level in five weeks, and the recovery of levels of the USD against a basket of global currencies, this comes ahead of the decisions and the statement of monetary policy of the Federal Reserve.
Gold prices fell by 9:25 GMT to 1245.42 USD an ounce from the opening level of 1250.15 USD, and recorded the highest level of 1250.67 USD, and the lowest 1243.79 USD .
Yesterday’s gold prices fell by 0.4 % , the first loss in four days, by correction and profit taking, after the previous day’s highest five-week high of 1258.81 USD an ounce.
The dollar index rose more than 0.1 percent, continuing its rise for the second day in a row, reflecting the recovery of the USD currency levels from a 13-month low against a basket of global currencies, the rise of the dollar comes after a big leap in the yield of US bonds for ten years.
The Federal Reserve’s Monetary Policy Committee (FOMC) concludes its weekly meeting yesterday to discuss appropriate monetary policies for developments in the US economic growth path, with the interest rate decision and monetary policy statement to be released by 18:00 GMT.
Most market expectations show interest rates unchanged at 1.25%, especially after cautious remarks by Janet Yellen, President of the House, to Congress during the semi annual report, and after data showing continued weakness in inflation levels in the United States.
The monetary policy statement is expected to bear fresh evidence of the possibility of raising interest rates for the third time this year and about the timing of starting to reduce the board’s balance sheet.
Gold holdings at SPDR Gold Trust The world’s largest gold backed fund fell yesterday by 9.17 metric tons, the third consecutive daily decline, the biggest daily drop since June 14, to a total of 800.45 metric tons, the lowest level since January 25th