As the policy-making arm of the U.S. Federal Reserve prepares to adjourn two days of meetings on Wednesday afternoon, a press conference is scheduled for 2 p.m. The topic of intense speculation, whether the Fed will taper its stimulus measures, is likely to be answered at that press conference.
"The market is looking for around $5 to $10 billion worth of tapering in one way, shape or form and if this is seen, I suspect gold will initially come off," states a Wednesday email authored by precious metals head David Govett with Marex Spectron Group in London, according to Bloomberg. "A large part of the market is already short in anticipation of this. If no taper is announced, gold will shoot straight back up."
At 10:20 a.m. on Wednesday, gold futures fell 0.85 percent, an $11.13 loss to $1,299.47 per troy ounce.
Reuters reports gold futures' losses on Wednesday mark a third consecutive trading session of performing poorly as speculation mounts about stimulus tapering.
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