Gold Drops Below $1225 Awaiting Fed

Gold fell for a fifth session in a row on Tuesday to its lowest in nearly two weeks as investors nervously awaited the U.S. Federal Reserve’s policy meeting that begins later in the day for clues about the timing of any interest rate hike.

Spot gold dropped to $1,222.20 an ounce, its lowest since Oct. 15, before recovering slightly to trade down 0.2 percent at $1,222.58 an ounce by 0039 GMT. The five-day losing streak matches a similar run in August.

The Fed is likely to announce the end of its massive bond-buying stimulus when it wraps up a two-day meeting on Wednesday. Markets, which have been fearing a sooner-than-expected hike in rates, will be scrutinizing any signals about the timing of any rate increase and the central bank’s view on the global economy.

CNBC

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