Gold futures were trading lower Wednesday, on track for a fifth consecutive decline, as investors awaited a Federal Reserve meeting that could offer clues on how central bank officials view the economic outlook.
The policy update, which occurs after gold settles at 130 p.m. Eastern, could be influenced by the central banks take on the health of the U.S. amid the coronavirus pandemic.
Golds trade on Wednesday was being weighed by a rebound in the U.S. dollar, which was up 0.4, as gauged by the ICE U.S. Dollar Index. A stronger dollar can undercut appetite for gold among those investors using other currencies.
February gold was off 9.10, or 0.5, at 1,841.70 an ounce, after falling 0.2 on Tuesday. A decline Wednesday would match the longest streak of lower settlements for a mostactive contract since a fivesession slide ended on April 30, FactSet data show.
Silver for March delivery declined 40 cents, or 1.7, to reach 25.11 an ounce, following a 0.2 gain in the prior session.
There will be a technical breakdown if gold and silver continue to fall in the US session and before Federal Reserve press conference, wrote Chintan Karnani, chief market analyst at Insignia Consultants, in a Wednesday note.
The Fed will conclude its first policy meeting of 2021 on Wednesday afternoon, releasing a policy statement, followed by Chairman Jerome Powells news conference at 230 p.m.
The Fed isnt expected to make any policy moves and Powell is likely to reiterate the central banks…