Gold struggles to navigate ahead of Fed meeting

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Gold futures changed little on Tuesday before the start of a two-day meeting of policymakers at the Federal Reserve. Gold for June delivery GC00, + 0.25% GCM21, + 0.25% was up $ 2.50, or 0.1%, to $ 1,782.60 an ounce on Comex. May silver SIK21, + 0.58%, was up 9.1 cents, or 0.3%, to $ 26.30 an ounce.

Fed Chairman Jerome Powell “is not expected to falter from interest rate expectations or by focusing too much on the recent rising yields,” said Sophie Griffiths, market analyst at Oanda, a note. At the Fed’s two-day meeting, which wraps up Wednesday afternoon, policymakers are expected to maintain their stance that they can wait until 2024 for US interest rate hikes – month on purchases of assets, also known as quantitative easing. Investors will be on the lookout for clues about job recovery or any rise in inflation. A more bullish-sounding Fed could see the precious metal drop lower, ”Griffiths said. Read: Why the Fed’s Focus on Those Hardest hit by the Pandemic Matters for Markets