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Gold futures inch lower ahead of Fed outcome

Published 01/28/2015, 03:14 AM
Updated 01/28/2015, 03:14 AM
Gold edges lower ahead of FOMC decision

Investing.com - Gold inched lower in lackluster trade on Wednesday, as investors remained cautious ahead of the outcome of a highly anticipated Federal Reserve meeting later in the day.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery dipped $3.50, or 0.27%, to trade at $1,289.40 a troy ounce during European morning hours. Prices held in a tight range between $1,286.90 and $1,294.60.

A day earlier, gold rallied $12.50, or 0.98%, to settle at $1,292.90 after abysmal U.S. durable goods data clouded the outlook on the economic recovery.

Futures were likely to find support at $1,273.00, the low from January 27, and resistance at $1,308.80, the high from January 22.

Also on the Comex, silver futures for March delivery declined 7.6 cents, or 0.42%, to trade at $18.00 a troy ounce. On Tuesday, silver rose 10.1 cents, or 0.56%, to end at $18.08.

Market players looked ahead to the outcome of the Fed's policy meeting later in the day, at which it is widely expected to keep policy on hold.

Investors will be scrutinizing the Fed's statement for wording that reflects expectations that interest rates will remain on hold near zero levels for some time to come.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged up 0.25% to hit 94.48 after falling to almost one week lows of 93.95 in the previous session.

Elsewhere in metals trading, copper for March delivery tacked on 1.7 cents, or 0.67%, to trade at $2.479 a pound. The March contract hit a five-year low of $2.419 on Monday.

The red metal is down approximately 11.5% so far in January as concerns over the global economic outlook and the impact on future demand prospects dampened the appeal of the commodity.

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