Gold Continues to Drop Before Fed Statement

Gold fell for a second day to the lowest price in almost six weeks in New York on speculation the U.S. Federal Reserve will slow stimulus. Silver reached a one-month low and platinum reached the lowest in seven weeks.
The dollar held above the lowest level since August versus the euro before the U.S. central bank concludes a two-day meeting today when policy makers will decide whether to slow its $85 billion of monthly asset purchases. Gold futures reached $1,291.50 an ounce today, the lowest since Aug. 8.
Gold fell 23 percent this year as some investors lost faith in the metal as a store of value and on speculation the Fed will curb stimulus. Analysts are divided on the amount by which policy makers will scale back its monthly asset purchases today. Among 64 economists surveyed by Bloomberg News, 33 predict the Fed will reduce its buying of Treasuries by $5 billion or less, with 31 forecasting a cut of $10 billion or more.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza