Gold futures prices inched lower on Wednesday, falling below the $1,200-level as growing bets for an interest rate hike by the US Fed.
Comex gold futures shed $2.65, or around 0.2%, to $1,199.55 a troy ounce.
Spot gold fell by 0.42 per cent to USD 1,198.60 an ounce.
It is expected widely to raise the Fed funds target a group fed by a quarter point at the conclusion of its policy meeting on Wednesday, which would put it in a range between 0.75% -1%.
The Fed will also release the latest forecast for economic growth and interest rates, known as the “dot plot.”
Federal Reserve Chairman Janet Yellen is scheduled to hold what would be the prospective news conference after 30 minutes of the announcement of the release of the Federal Reserve, where investors are looking for any change in the tone of the hawks on the economy or raise interest rates in the future.
Federal Reserve officials previously expected three to raise interest rates in 2017, but that may move up to four, on signs that the recent uptick in inflation and continued strength in the labor market.
Ahead of the Fed decision, the reports showed that inflation United States deploy the smallest increase since last summer, while retail sales posted the smallest increase in six months in February.
In Delhi gold of 99.9 per cent and 99.5 per cent purity declined by Rs 250 each to Rs 28,650 and Rs 28,500 per 10 grams, respectively.
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