Gold prices fell to their lowest level in one week in the North American trading on Tuesday, shortly before the expected interest rate by the Fed.
Comex gold futures were at $1,265.89 a troy ounce, down $3.00, or around 0.3%, after falling to its lowest since June 2 at $1,263.84 in overnight trade.
Spot gold fell 0.09 per cent to USD 1,264.30 an ounce and Spot silver by 0.59 per cent to USD 16.83 an ounce in Singapore.
At the Multi Commodity Exchange, gold for delivery in August declined by Rs 36, or 0.12 per cent to Rs 28,957 per ten grams.
The Fed begins its two-day policy meeting on Tuesday, as it is widely expected to raise the target range of federal funds by a quarter point to between 1.0% -1.25%.
US central bank last released its forecast for economic growth and interest rates, known as the “plot point.”
Federal Reserve Chairman Janet Yellen will hold a close press conference 30 minutes after the Fed’s release, as investors look for new hints about the pace of further tightening in the coming months and next year.
Market analysts said the dump positions by participants in line with a weak trend overseas, mainly led to the decline in gold prices in futures trade.
The players in the market also will pay close attention to the details of the Fed’s plan to reduce the general budget of $ 4.5 trillion later this year.
The average expectations of policymakers in the Federal Reserve are expected to increase by another two percent by the end of the year, after raising the benchmark interest rate once this year, by a quarter percentage point in March.
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