Spot gold prices are trading around unchanged levels Tuesday as market participants await the conclusion of the two-day FOMC meeting which begins today. Spot gold ended Monday’s session almost unchanged at $1621.96 a troy ounce, after prices had spent much of the session in corrective mode after shying away from $1629. Prices continued to decline before finding some modest support just above $1614 before turning higher later on in the day. Prices have been observed in a narrow trading range in Asia this morning, with the precious metal initially slipping to session lows of $1620.95 before improving to intra-day highs of $1625.43. Prices remain underpinned by market expectations that the US Federal Reserve will be forced to unleash some sort of QE measures on the market after a sequence of weak US data continues to show the US economy languishing in the dust of the vaults. Even if no fresh stimulus measures are introduced at the conclusion of this 2-day Fed meeting, gold prices are likely to continue to trade in a holding pattern until the next FOMC gathering. Spot gold last $1623.70.
EasyForexNews Research Team