Nicholas Larkin and Glenys Sim
June 20, 2012
Gold is set to decline for a second day in London as investors await the outcome of the Federal Reserve’s monetary-policy meeting.
The central bank decides whether to add further stimulus when it concludes a two-day meeting today. The Fed will expand Operation Twist beyond $400 billion to spur growth and buy protection against a deeper crisis in Europe, according to a Bloomberg News survey of economists. Euro-area leaders at the Group of 20 summit in Mexico yesterday pledged to take “all necessary policy measures” to defend the currency union.
“Some nervous low-volume trading is to be expected ahead of the Federal Open Market Committee’s statement,” Andrey Kryuchenkov, an analyst at VTB Capital in London, wrote today in a report. “Unless the dollar tumbles, there is little chance for a sustained rebound in gold.”
Bullion for immediate delivery fell 0.1 percent to $1,617.02 an ounce by 9:16 a.m. in London. August-delivery futures were 0.4 percent lower at $1,617.50 on the Comex in New York.
This article was posted: Wednesday, June 20, 2012 at 2:40 am