Gold falls for second day ahead of Fed announcement
Gold prices rose for the second day on January 25 as speculation surrounding the Federal Reserve Bank's upcoming decision on monetary policy reduced the demand of precious metals buyers.
February gold futures trading on the Comex division of the New York Mercantile Exchange dropped 0.6 percent to reach $1,653.70 an ounce by 8:04 a.m. EST, according to Bloomberg. Bullion for immediate delivery in London dropped 0.7 percent to reach $1,653.63. Reuters reports that spot gold was trading 0.6 percent lower at $1,655.16 per ounce at 13:20 GMT.
The Federal Reserve is expected to release its predictions related to monetary policy, according to the media outlet. Market experts predict that the U.S. central bank will not raise interest rates until at least 2014.
"In the absence of sustained physical interest, gold is prone to a little more downside this week as bullion continues trading with global risk sentiment," Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote in a report, the media outlet reports. He stated that the central bank is "set to remain accommodative for now," which could cause precious metals buyers to drive gold prices higher.
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