The gold price slipped slightly lower during Asian trading hours as investors await the key Fed meeting. Analysts expect prices to trade in a tight range during the session as gold market participants stay on the sidelines.
Spot gold price was last seen at $1,155.2, declining about a dollar lower from Monday’s close. The yellow metal was trading within a $5 range and not far from its recent four-month low of $1,147 per ounce. Silver was lower as well, falling seven cents to $15.58 per ounce.
Market participants are currently awaiting the start of a two-day FOMC meeting which will focus once again on the rate hike timeline.
“We expect markets to look for the removal of the word ‘patient’ from Yellen’s testimony, widely seen as a signal that the Fed will continue to hold back. Its inclusion would push the needle towards September; its removal would shift consensus to June,” Fastmarkets’ research analyst Tom Moore said.
Overnight, disappointing manufacturing data out of the US drove the USD off a fresh 11 years high of 1.0457 seen in recent days, with the greenback last trading around 1.0570.
For the day ahead, the market awaits more data out of US that could hint at what might be said at the Fed meeting today with regards to rate hike policy. Building permits are expected to come in at 1.07 million while and housing starts numbers are expected at 1.05 million.
“US data this week is therefore likely to gain additional weight while markets try and anticipate the FOMC’s tone… The recent run of US data has painted a deteriorating picture of the US economy, however – it has become a victim of its own success, with the dollar eroding the country’s global competiveness,” Moore added.
In the other precious metals, the PGMs suffered more overnight losses – Platinum is $5 lower at $1,104 and palladium fell $9 to $772 per ounce.
The post Gold price slips lower ahead of FOMC meeting appeared first on The Bullion Desk.
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