Gold prices fell Wednesday, setting the yellow metal up for its lowest finish in about a month as investors await clues from U.S. Federal Reserve officials on the pace of interest-rate increases and the economic outlook.
The central bank will conclude their two-day monetary policy meeting and issue a statement shortly after the settlement for gold futures prices later Wednesday.
June gold GCM7, -0.68% fell $7.30, or 0.6%, to $1,249.70 an ounce. A settlement around this level would be the lowest since April 5, according to FactSet data.
The Fed decision also comes two days ahead of U.S. employment data for April, scheduled to be released on Friday, and another likely market mover across the risk spectrum.
Rising real interest rates tend to lower the opportunity costs of holding gold because the metal provides no yield. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the gold price.
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