By Barani Krishnan
Investing.com - Gold slipped as Apple's (NASDAQ:AAPL) forecast-beating results helped equities Wednesday, steering investors towards risk and away from safe havens such as gold.
Those holding long positions in gold had expected the yellow metal to recapture the key bullish perch of $1,300 ahead of the Federal Reserve's 2:00 PM ET (18:00 GMT) policy announcement, which is widely expected to result in another hold on U.S. interest rates. The dollar was down as well ahead of the Fed decision, creating a more conducive setting for higher gold prices.
Spot gold, reflective of trades in bullion, was down $1.15, or 0.1%, at $1,281.96 per ounce by 1:20 PM ET (17:20 GMT).
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, slid $2.15, or 0.2%, to $1,283.55 per ounce.
The Fed was expected to keep the benchmark interest rate steady at the current target range of 2.25% to 2.50%, according to Investing.com's Fed Rate Monitor Tool.
Bloomberg reported that Federal Reserve policymakers may decide that falling inflation reinforces a message of caution on interest-rate moves, rather than bowing to President Donald Trump’s demands for drastic action to boost the U.S. economy. Trump has been pushing for a rate cut.
The central bank's monthly statement "is more likely to provide an update to how the Fed is viewing the U.S. economy, rather than any immediate changes to monetary policy," Fawad Razaqzada, analyst at FOREX.com, said in an e-mail to Investing.com.
"Recent U.S. data suggests the world’s largest economy has remained relatively strong with the unemployment rate approaching a 50-year low, but inflationary pressures have remained soft," Razaqzada said. "All told, however, we may not get any hints over a potential rate cut this year, meaning the markets’ reaction might be subdued this evening."
The dollar index, which measures the greenback against a basket of six currencies, was down 0.2% at 97.02 after striking a one-week low at 96.99. The U.S. currency slid 0.4% on Tuesday for its biggest daily decline in more than three weeks.
While gold longs aim to recapture $1,300 pricing in the near term, Standard Chartered (LON:STAN) says it expects the yellow metal to consolidate lower and average $1,285 per ounce in second quarter. They only anticipate the yellow metal to average $1,325 per ounce in the fourth quarter.
Palladium turned volatile, sliding after Tuesday's rebound from the 7% tumble from the beginning of the week.
Spot palladium was down $34.50, or 2.5%, at $1,353.65 an ounce.
Trades in other Comex metals as of 1:20 PM ET (17:20 GMT):
Palladium futures down $37.15, or 2.7%, at $1,345.55 per ounce.
Platinum futures down $15.35, or 1.7%, at $876.35 per ounce.
Silver futures down 25 cents, or 1.6%, at $14.74 per ounce.
Copper futures down 9 cents, or 3.2%, at $2.81 per pound.