All eyes are falling on the U.S. Federal Reserve for a Wednesday afternoon announcement as the body wraps up two days of meetings set to boost the sluggish U.S. economy, according to published reports.
Gold prices are likely to derive some sort of bounce from Chairman Ben Bernanke's announcement, which Reuters reports is likely to be purchases of long-term Treasury notes as one method of jumpstarting the nation's sluggish economy. Bernanke has been vocal about the Fed's drive to reduce the U.S.' unemployment rate, which has sunk no lower than 9 percent this year, according to Dow
"The expectation of some sort of easing from the Fed and poor economic data will make it difficult for gold to break sharply below $1,800," analyst Li Ning with Shanghai CIFCO Futures told Reuters.
At 8:14 a.m. on Wednesday, gold futures fell 0.61 percent, an $11 reduction to $1,798.10 per troy ounce.
As gold futures fell lower than the milestone price of $1,800 per troy ounce, the precious metal remains en route to achieving its 11th consecutive year of annual gains. The precious metal is roughly 25 percent higher in price now as compared to the price of gold futures when the year began.
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