Gold prices fell, during trading today, Wednesday, amid anticipation of the results of the Federal Reserve Board meeting, which concludes its work today.
Gold futures contracts, for December delivery, fell 0.12%, to $1,776.40 an ounce, by 09:38 AM GMT.
While gold prices in spot transactions increased by 0.10%, recording 1776.35 dollars an ounce.
Silver futures prices for December delivery rose 0.37%, to $22.70 an ounce.
And the spot prices for platinum rose 1.65%, recording $973.04 an ounce.
Meanwhile, the dollar index, which measures the performance of the US currency against a basket of 6 other major currencies, rose 0.01%, at 93.2110 points.
The divergence in gold prices between spot and future contracts came amid anticipation of the results of the monetary policy meeting of the US Federal Reserve, as it is expected to present the timetable for reducing stimulus and interest rates in America.
Air Guide Director Michael Langford confirmed that the Fed’s decisions will be cautious in cutting stimulus, pointing to an earlier report by the Organization for Economic Cooperation and Development that hinted that talk of withdrawing economic support was premature.
Analysts expected gold prices to stabilize above $1,800 an ounce, after the Federal Reserve confirmed it would not cut monetary support, leading to dollar weakness.
DailyFX Currency Strategist Elia Spivak has pointed out that the yellow metal may continue to trend down this month.
He added that the Fed expects more than 100 basis points to rise in the cumulative rate, through the end of 2024, which could be a negative catalyst for gold.
It is noteworthy that raising the interest rate raises the opportunity cost of holding non-interest bearing gold.
The debt crisis of China’s debt-laden real estate developer Evergrande has cast a shadow on market prices, as it is expected to pay part of the interest on its bonds due on Thursday, pushing some stocks to rest.
The holdings of the world’s largest gold-backed trading fund (SPDR Gold Trust), also fell 0.1%, on Tuesday.