Gold Drops On Firm Dollar Ahead Of Fed Decision

Gold prices fell slightly on Wednesday and the U.S. dollar firmed up against its peers as investors awaited the Fed’s interest-rate decision later in the day.

Spot gold dropped 0.2 percent to $1,303.47 per ounce while U.S. gold futures were down 0.25 percent at $1,303.45 an ounce.

Analysts expect no change in policy from the U.S. Federal Reserve, but its forward guidance as well as remarks by Chairman Jerome Powell at his news conference will be closely scrutinized.

Investors expect zero rate hikes this year as U.S.-China trade tensions simmer.

The dollar rose against most of its peers in the wake of conflicting reports on U.S.-China trade talks.

There are signs of fault lines emerging in ongoing U.S.-China trade talks, with a Bloomberg report suggesting that China is pushing back against U.S. demands in trade negotiations.

On the contrary, a Trump administration official said that U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin would return to China next week for another round of trade talks with Chinese Vice Premier Liu He.

On the Brexit front, media reports suggest that British Prime Minister Theresa May will request a short delay to Brexit in a letter to European Union leaders today, ahead of a summit of EU leaders on Thursday and Friday.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Gold Drops On Firm Dollar Ahead Of Fed Decision

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