Gold prices are down, but some experts say the downside is limited

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On Wednesday, gold futures were under some selling pressure amid a modest pullback in stocks, but some experts are forecasting a recovery in bullion prices as questions linger about the state of the economy and elevated valuations. of the stock market. Commodity investors can learn more about the outlook for both after the Federal Reserve releases its report from its March policy meeting at 2 p.m. ET, about half an hour after gold settles.

Market participants are looking for clues about the Fed’s view on inflation and the possibility that the central bank may soon reduce its market-stimulating bond-buying program as a first step toward normalizing monetary policy. In the past five days, gold prices have regained some ground after hitting a 12-month low in early March. “Trader and investor attitudes remain very optimistic midweek, which is negative for safe-haven metals,” wrote Jim Wyckoff, senior analyst at Kitco.com. “However, losses in gold and silver will likely be limited in the short term, as the short-term technical stances of both metals have improved recently,” he said. June GCM21 gold, -0.22% GC00, -0.22% on Comex was trading $ 6.20, or 0.4%, at $ 1,736.80 an ounce on Comex after gaining 0.8% on Tuesday, making a fourth consecutive gain and matching its chain. Longest advance since a similar stretch ended Feb. 10, FactSet data shows. Some commodity experts believe that gold movements may be limited if investors doubt that equity markets continue to record records. “Market players believe that much of the good news is already embedded in the stock market, and now may be the time for investors to take a breather,” writes Naeem Aslam, AvaTrade’s chief market analyst in a note. “Concerns about inflation are real and are further driving the gold price momentum,” the analyst said.