Gold tries to trade off 3-week low as Fed prepares to meet

MarketWatch/Mark DeCambre/05-02-17

Gold was in a holding pattern Tuesday as the Federal Reserve prepared to kick off a two-day policy meeting that will be closely watched for clues on the pace of future interest-rate hikes and for the central bank’s outlook on the U.S. economy.

…Gold and silver prices have been retreating since mid- to late-April, as geopolitical tensions, particularly those associated with the elections in France, have started to recede. Precious metals tend to benefit from haven demand amid uncertainty. Gold has ended lower four out of the past six sessions, while the silver contract has declined in nine of the past 10.

…Looking ahead, Wall Street expects the Fed to leave rates on hold at the conclusion of its monetary-policy meeting on Wednesday, but will be looking for indications on how quickly Fed Chairwoman Janet Yellen intends on raising rates for signs of the Fed’s view on the economy.