Gold holds near 4-week low with focus on key Federal Reserve meeting

Gold held near the lowest in four weeks in the wake of higher bond yields, as investors awaited a key Federal Reserve meeting for clues on future monetary policy.

The yield on 10-year Treasuries eased slightly on Monday, following a two-day gain from the lowest since March that damped the appeal of the non-interest-bearing precious metal. Bullion traders’ attention will be on the Fed’s two-day meeting which starts Tuesday, as well as comments from central bank Chair Jerome Powell, for signals on a timeline for paring stimulus.

Bullion’s retreat from the highest since January earlier this month came as investors weigh inflation pressures. Expectations are that the Fed won’t signal scaling back bond purchases until August or September, even if it delivers projections for an interest-rate liftoff in 2023, according to economists surveyed by Bloomberg.

Spot gold was little changed at $1,865.75 an ounce at 1:54 p.m. in London. Prices slid as low as $1,844.92 on Monday, the lowest since May 17. Silver and platinum dropped, while palladium steadied. The Bloomberg Dollar Spot Index rose 0.2 per cent.