Gold prices are slightly lower in early U.S. trading Monday, on mild profit taking and some backing and filling on the charts as prices hover near last week’s five-week high. December Comex gold was last down $1.80 at $1,350.70 an ounce. Spot gold was last quoted down $1.30 at $1352.00. December Comex silver last traded down $0.084 at $22.555 an ounce.
It was a quieter overnight trade Monday, amid a lack of major economic data issued overseas and as traders and investors are looking ahead to this week’s U.S. Federal Reserve’s Open Market Committee meeting. The meeting begins Tuesday and ends Wednesday at midday. The FOMC is expected to leaving U.S. monetary policy unchanged, but as usual traders and investors will be looking for any clues on the timing of changes in policy.
Most in the market place believe the Fed will not start to cut back on its monthly bond purchases until early next year—most likely the second quarter at the earliest. This scenario favors the raw commodity market bulls, including the precious metals markets. Any hints at this week’s FOMC meeting that the “tapering” of monetary policy could come sooner than the second quarter of 2014 would likely be bearish for most markets.
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