Metals Stocks: Gold edges lower as traders await Fed meeting

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Gold futures kicked off the week marginally weaker as traders looked ahead to this week’s meeting of Federal Reserve policy makers.

Gold for June delivery
GC00,
-0.03%

GCM21,
-0.03%

fell $8.20, or 0.4%, to $1,769.60 an ounce on Comex. May silver
SIK21,
+0.17%

was off 10 cents, or 0.4%, to $25.975 an ounce.

The Federal Reserve will conclude a two-day policy meeting on Wednesday. No change in policy is expected and Fed Chairman Jerome Powell is expected to continue insisting that interest rates are unlikely to rise before 2022 despite improving economic data and rising inflation fears.

Read: Tone of next week’s U.S. economic data on track to be positive but the Fed will remain tone-deaf

“If Fed Chair Powell were to play down the latest rise in inflation again at the subsequent press conference, gold could profit because this would confirm the impression that the Fed is prepared to accept an overheating of the economy and that it risks falling behind the curve,” said Carsten Fritsch, analyst at Commerzbank, in a note.

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