Gold retains bearish bias ahead of Fed.
Gold under the mild bearish pressure today as investors are waiting for any signs of early tapering from the U.S. Federal Reserve meeting later today. In a new policy statement and economic projections due today, the Fed is expected to acknowledge the first conversations among its policymakers on when and how fast to pare back its massive bond-buying programme. The market is looking for any hawkish signals so they would be more likely to move gold prices. Data on Tuesday showed U.S. retail sales dropped more than expected in May. This comes on the back of recent data showing a spike in U.S. consumer prices, which have raised concerns over rising inflation. Market participants will be focused on any comments over inflation risks – inversely correlated to gold prices.
Next support to watch – 1843.00
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