Gold down to $1295 before Fed Meets

Gold retreated for a second day, trimming a monthly rise, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus as it starts a two-day policy meeting today.

Bullion for immediate delivery fell as much as 0.2 percent to $1,293.77 an ounce, and traded at $1,295.12 at 11:53 a.m. in Singapore. Prices are up 0.9 percent this month after dropping 3.2 percent in March, according to Bloomberg generic pricing.

Gold slid 28 percent in 2013 to end a 12-year winning run on expectations that the Fed would reduce stimulus as the world’s largest economy recovers. The central bank will probably trim its monthly asset purchases by another $10 billion to $45 billion, a Bloomberg News poll shows, after announcing cuts at each of the past three meetings. Bullion rose to two-week high yesterday amid unrest in Ukraine.

Bloomberg

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