Gold down ahead of US Fed decision

Gold prices fell today, Wednesday, to the lowest level in more than three weeks, with the dollar rising ahead of a decision by the Federal Reserve (the US central bank) regarding interest rates and monetary policy indicators later on Wednesday.

According to Reuters, gold fell in spot transactions by 0.2% to $1,975.07 per ounce by 0711 GMT. US gold futures also fell 0.2% to $1,990.10.

US dollar rose 0.2% against competing currencies, which increases the cost of gold for holders of other currencies.

The Monetary Policy Committee responsible for setting interest rates at the Federal Reserve will issue a statement setting monetary policy and the interest rate decision at 1900 GMT, followed by a press conference by Bank Chairman Jerome Powell at 1930 GMT.

Traders widely expect the Federal Reserve to keep interest rates unchanged in a range between 5.25 and 5.50% this week, and they also expect approximately 75% to cut interest rates in May, according to CM’s FeedWatch tool. E

Market traders are also awaiting the monetary policy meetings of the European Central Bank and the Bank of England on Thursday

As for other precious metals, silver continued its losses for the eighth session, falling 0.6% to $22.62 per ounce, platinum falling 0.3% to $926.55, and palladium 0.7% to $972.95.