Precious-Gold retreated for a third consecutive session on Wednesday amid expectations the Fed would continue its stimulus reduction.
The focus today will remain on the outcome of the Fed’s two-day meeting concluded on Wednesday, where analysts believe policymakers would cut another $10 billion to $65 billion for the second time in six weeks.
Data released yesterday showed that U.S. consumer confidence climbed to a five-month high in January, yet durable goods plunged by the most in five months in December.
Investors are tracking fundamentals from the United States as well as they know that the pace of stimulus reduction would largely depend on the progress in the economy.
The yellow metal is currently trading around $1251.64 an ounce after hitting a high of $1255.98 and a low of $1248.81, where the metal probably halted its gains after hitting resistance near $1280 levels while found support at $1250.
Gold was also affected by the rebound in equity market after the Turkish central bank decided to raise interest rates by more than double to rescue the local currency from a sever drop.
The woes in emerging markets after the recent currency devaluation and political jitters have provided some haven demand to the metal, but the focus now has turned on the Fed’s meeting outcome.
Gold may be headed for the longest losing streak in almost six weeks, especially if the Fed opted to continue bond purchases reduction.
The U.S. dollar ticked down versus a basket of major currencies to hover around 80.66 after hitting a low of 80.65.
Crude oil for March’s delivery slipped to trade around $97.09 a barrel from the session’s opening of $97.16.