Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday ahead of the Federal Reserve’s monetary policy meeting next week, which will conclude with an interest rate decision on Wednesday.
The most active gold contract for August delivery fell 23.10 U.S. dollars, or 1.17 percent, to close at 1,958.40 dollars per ounce.
Gold remained trapped in a tight trading range of about 2 percent from the lower to higher end in the past week, as investors waited for clues on the Federal Reserve’s interest rate direction.
In short term, gold price may remain locked in the range from 1,950 dollars to 2,000 dollars, market analysts hold.
The U.S. Commerce Department reported Wednesday that U.S. trade deficit jumped 23 percent in April to a six-month high of 74.6 billion U.S. dollars, further dampening gold.
Silver for July delivery fell 14.10 cents, or 0.60 percent, to close at 23.529 dollars per ounce. Platinum for July delivery fell 14.10 dollars, or 1.36 percent, to close at 1,024.60 dollars per ounce.
