Gold inches lower ahead of U.S. Fed policy meet
- Date: 16-Mar-2021
- Source: Zawya
- Sector:Oil & Gas
- Country:Middle East
Gold inches lower ahead of U.S. Fed policy meet
Gold prices eased on Tuesday, as investors turned to riskier assets on hopes of a quick economic recovery, while they awaited the outcome of a U.S. Federal Reserve policy meeting.FUNDAMENTALS* Spot gold was little changed at $1,732.32 per ounce by 0108 GMT, while U.S. gold futures fell 0.05% to $1,728.20 per ounce.* Fed policymakers are set to forecast that the U.S. economy will accelerate at the quickest rate in decades in 2021, with unemployment dropping and inflation increasing, as the COVID-19 vaccine initiative ramps up and a $1.9 trillion relief package is dispersed among households. * Bullion was also pressured as the S&P 500 and Dow Jones Industrial Average closed at all-time highs on Monday. Asian stocks were set to open higher on Tuesday. * Longer-term U.S. Treasury yields fell on Monday, and the yield curve flattened. * Andrew Bailey, governor of the Bank of England, said he was more hopeful about the economy, "with a strong dose of caution," and a recent increase in interest rates in capital markets was consistent with the chances of recovery from the COVID recession. * Investors also eye the U.S. Commerce Department's February retail sales data due on Tuesday, following January's 5.3% surge.*