Gold stumbles as investors anticipate Fed policy decision

Gold dropped on Wednesday in Asia as investors focused on the latest U.S. Federal Reserve policy decision. Investors will mull over the central bank’s plans to curb soaring inflation and assuage concerns about the economic recovery from the coronavirus pandemic.

Gold futures edged down 0.30% to $1,784.05by 11:29 PM ET (3:29 AM GMT).

The central bank will hand down its decision within the day, where it is widely expected to disclose its timetable for asset tapering. The Fed is likely to begin reducing its monthly purchases by $15 billion each month and completely ending them by mid-2022. The timeline for interest rate increases is still uncertain.

The Bank of England is also due to hand down its decision on Thursday, while in Japan, policymakers reiterated the commitment of the country’s central bank to its 2% inflation target.

In other precious metals, silver inched down 0.2%, while platinum remained largely unchanged at $1,037.49. Palladium went up 0.4%.