Spot gold fell 0.4% to $1,909.26 an ounce by 1:00 p.m. ET, its lowest in over two weeks. US gold futures dropped 0.9% to $1,911.60 an ounce in New York.
[Click here for an interactive chart of gold prices]
Meanwhile, benchmark 10-year US treasury yields are approaching the highest in almost three years, placing further pressure on bullion. Wall Street’s main indexes also jumped on Wednesday, led by gains in technology and financial stocks.
“Everybody is anticipating the Federal Reserve verdict this afternoon and the big question is, whether it is a quarter-point or half-point rate hike,” Bob Haberkorn, senior market strategist at RJO Futures, commented in a Reuters update.
“Stocks have been resilient this morning and bouncing back, so there is a risk-on sentiment in the market, and gold, being a safety asset, is lower for the time being,” he added.
“Some positive news reports on the Russia-Ukraine war front and the recent big drop in crude oil prices are lifting marketplace sentiment,” Jim Wyckoff, senior analyst at Kitco Metals, wrote in a note.
(With files from Reuters)
