Gold falls as traders await Fed meeting

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Gold futures started the week slightly weaker as traders looked ahead to this week’s meeting of policy makers from the Federal Reserve. Gold for June delivery GC00, -0.40% GCM21, -0.40% fell $ 8.20, or 0.4%, to $ 1,769.60 an ounce on Comex. May silver SIK21, -0.27%, was down 10 cents, or 0.4%, to $ 25.975 an ounce.

The Federal Reserve will wrap up a two-day policy meeting on Wednesday. No policy change is expected and Fed Chairman Jerome Powell is expected to continue to insist that interest rates are unlikely to rise before 2022 despite improving economic data and rising rates. inflation fears. Read: The tone of next week’s US economic data is on track to be positive, but the Fed will remain deaf. “If Fed Chairman Powell downplayed the latest rise in inflation again at the subsequent press conference, gold could benefit because this would confirm the impression that the Fed is prepared to accept an overheating economy and that it is running the risk of falling behind the curve, ”Commerzbank analyst Carsten Fritsch said in a note.