Gold futures backed down to the psychological milestone price of $1,600 per troy ounce on Wednesday, as investors waited on the upshot of U.S. Federal Reserve policy makers' two-day meetings, which wrap up in the afternoon, Reuters reports.
Abundant speculation noted the Federal Open Market Committee will continue "Operation Twist," which has the central bank buying bonds past the end of this month. Forty-five percent of economists surveyed by the news service earlier this month said the Fed ultimately will embark on another phase of stimulus.
"While additional quantitative easing is likely to boost (gold) prices and provide the springboard prices have lacked this year, any announcements providing less than this are more likely to expose prices to the downside give market expectations priced in," according to a note penned by Barclays Capital.
At 11:16 a.m. on Wednesday, gold futures dropped 0.99 percent, a $16.10 decrease to $1,607.10 per troy ounce.
The yellowish metal losing value on Wednesday also was attributable to investors concerned about the U.S. Federal Reserve opting against any intervention, The Wall Street Journal reports.
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