London — Gold drifted lower on Wednesday as the dollar firmed ahead of a US Federal Reserve policy decision, and investors opted to sell bonds and buy equities as worries over a worldwide growth slowdown fade. Company results and economic data have been upbeat of late. Germany’s Ifo business survey on Tuesday also showed confidence soaring to record highs in July while US consumer confidence levels jumped to near 16-year highs, boosting the dollar. Traders said short positions were being trimmed on Wednesday ahead of the Federal Reserve’s policy decision, not due until late in the US session (6pm GMT). "It’s mainly sky-rocketing risk appetite that’s weighing on gold. US stocks closed at record highs, bonds tumbled, yields increased sharply and these are the ingredients for lower gold prices," said Commerzbank analyst Carsten Fritsch. "Stocks seem immune, at least for the moment, against a rather uncertain economic outlook and the political mess in Washington, and unless this changes...
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