Gold stumbles as traders turn their attention to equities
Metal slips as stock market gains dent its appeal ahead of the US Federal Reserve’s policy meeting later in the week
Bengaluru — Gold prices slipped on Monday, as gains in the equity markets dented the appeal of the precious metal ahead of a US Federal Reserve policy meeting this week. Spot gold was down 0.2% at $1,299.13/oz by 4.43am GMT. US gold futures fell 0.3% to $1,299/oz. The US Fed will begin its meeting on interest rates on Tuesday, which ends with a news conference on Wednesday. “This could be an important meeting. We’ve seen the Fed taking a much more dovish stance at the beginning of this year and particularly given the run of stronger numbers we have seen,” said Michael McCarthy, chief market strategist, CMC Markets. “We might see Fed moving back on their dovishness and keep a balanced risk approach and if that is the case we could see a strengthening US dollar and that could put pressure on the gold prices.” Gold, which offers no yield of its own, tends to fall out of favour among investors when interest rates rise. Investor sentiment towards gold is reflected in the reduction in net...
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