News Column

Gold Wobbles Ahead Fed Rate Decision

June 18, 2014



WASHINGTON (Alliance News) - Gold prices are little changed Wednesday morning with investors awaiting the outcome of the US Federal Reserve's two-day policy meeting that concludes later in the day.

It is widely expected that the Fed will reduce its asset buying by USD10 billion. More importantly, investors will be keen to know the Fed's views on growth and its outlook for interest rates.

Gold futures for August delivery are down USD0.90 or 0.07% at USD1,271.10 an ounce.

On Tuesday, gold futures ended down USD3.30 or 0.3% at USD1,272 an ounce, snapping a six-day winning streak.

Silver for July is down marginally at USD19.723 an ounce. Meanwhile, copper is up USD0.002 or 0.06% at USD3.063 per pound.

The US Commerce Department will release its current account data for the first quarter at 8:30 am ET. Economists expect a deficit of USD99.8 billion for the quarter, wider than the deficit of USD81.1 billion in the fourth quarter.

The Federal Reserve will announce its monetary policy decision at 2 pm ET. The central bank is widely expected to hold interest rates unchanged, while it is expected to continue trimming the size of its asset purchase program by another USD10 billion.

Also at 2 pm ET, the Fed will release updated forecasts for the economy and half an hour later Chair Janet Yellen will host the customary post-meeting press briefing.



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Source: Alliance News


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