Gold edges higher ahead of Fed policy statement

Gold firmed a touch on Wednesday ahead of a keenly awaited policy announcement from the Federal Reserve, as investors awaited further clues on when the US central bank will trim its monetary stimulus programme.
Speculation that the Fed will taper its $85 billion monthly bond purchases, in a move away from the ultra-loose monetary policy that sent gold prices to record highs in 2011, has knocked the metal 25 per cent lower this year. Worries that this fall had been overdone prompted a wave of short covering last week, lending some support to prices. They are likely to tread water along with the dollar until the Fed’s statement is released at 1900 GMT. Spot gold was up 0.3 per cent at $1,232.70 an ounce at 1223 GMT, while US gold futures for February delivery were up $2.20 an ounce at $1,232.30.
Source: Reuters
Source:Bullion bulletin

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