Capitals – Reuters:
Gold settled and moved in a narrow range yesterday, as investors awaited the outcome of the US Federal Reserve’s latest meeting for indications of a possible cut in economic support measures, while the dollar’s rise put pressure on the yellow metal. There was little change in gold in spot transactions at $ 1859.32 an ounce by 0523 GMT. And gold fell to its lowest level since May 17 to $ 1843.99 last Monday. US gold futures rose 0.2 percent to $1,860.40.
“Gold is down over a few days and this reflects growing expectations that (the Fed) cut back on QE may start sooner than the market currently expects,” said Ilya Spivak, currency strategist at the DailyFix.
He added: Gold entered the next stage lower, indicating the imminent support at this point at around $1850. He said: If we break through that with the help of (the reserve meeting) over the next twenty-four hours, gold may head towards $1800.