Gold prices drifted lower again on Wednesday, but they were mostly range-bound heading into what will like be a Fed-induced spike in trading action.
At last check, gold for August delivery was off $3 to $1,269 an ounce. July silver shed 5 cents to $19.69 an ounce.
A day earlier, gold snapped its six-session winning streak, pulling back slightly on word that the Iraq government has had at least some success in handling the ISIS militant threat.
Michael Lombardi of the Profit Confidential blog says he believes both gold and silver are poised to rally in the face of the current economic prospects.
“Today’s depressed precious metal prices continue to offer investors a real opportunity to get into gold and silver (two great inflation hedges) at discounted prices,” he wrote. “Both these metals should rise in value over the next five years as inflation accelerate.”
The two-day meeting winds with a statement due out at 2 p.m. Eastern. A half hour later, Janet Yellen will holder her press conference. Read: 5 questions in search of answers from the Fed.
Elsewhere in metals trading, July platinum lost $2.30 to $1,440.80 an ounce, while September palladium added $1.45 to $818.15 an ounce. High-grade copper for July delivery shed 1 cent to $3.05 a pound.
Source : Marketwatch