Gold traded near a three-month low as investors weighed the outlook for higher U.S. interest rates before the Federal Reserve concludes a two-day meeting and assets in funds backed by the precious metal dropped.
Bullion for immediate delivery traded at $1,150.51 an ounce by 8:46 a.m. in Singapore from $1,149.57 on Tuesday, according to Bloomberg generic pricing. The price fell to $1,142.92 on March 17, the lowest level since Dec. 1.
Central to the debate at the Fed’s meeting will be whether the economy has gained enough steam to warrant removing a pledge to be “patient” on raising borrowing costs. Almost 90 percent of economists surveyed by Bloomberg predict officials will drop the pledge from a policy statement due at the conclusion of their gathering on Wednesday. Holdings in bullion-backed exchange-traded products fell for a 14th straight day on Monday, the longest run in more than a year.
Assets in gold ETPs declined to 1,638.4 metric tons on Monday, the lowest since Jan. 21, according to data compiled by Bloomberg. Money managers have cut their net-long wagers on gold for six straight weeks, U.S. government data show.
Gold for April delivery was little changed at $1,149.60 an ounce on the Comex. Silver for immediate delivery gained 0.1 percent to $15.5896 an ounce.
Source : Bloomberg