Gold Falls to Lowest Level in Two Weeks Ahead of Fed

from Kitco NEWS

Gold fell to its lowest level in almost two weeks on Tuesday, with the spot price hitting $1,225.70 an ounce, its lowest price since March 2. The move comes ahead of the conclusion of this month’s U.S. Federal Reserve monetary policy meeting. ‘Arguably the most important data point of the week will be the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement and press conference from Fed Chair Janet Yellen,’ says Jim Wyckoff, a senior technical analyst with Kitco Metals. ‘No changes in U.S. monetary policy are expected at this meeting, but as always traders and investors will be closely parsing the FOMC statement and Yellen’s comments for clues on Fed policy moves in the coming weeks or months,’ the veteran trader adds. Wyckoff says that the marketplace believes there is about a 50-50 chance the Fed will raise interest rates in June. Wyckoff also comments on the yellow metal’s recent movement which calls to mind similarities to 1999, when gold rose powerfully in a short amount of time to break out of a period of progressively lower prices.

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