Gold eases to US$1,798

Tuesday, July 27, 2021

Gold edged lower on Monday as investors turned cautious in the run-up to a Federal Reserve policy meeting, overshadowing some support from a weaker dollar, Reuters reports.

Spot gold was down 0.2 percent at US$1,798.41 per ounce by 13:56 p.m. EDT, while U.S. gold futures settled 0.1 percent lower at US$1,799.20.

The U.S. central bank will begin its two-day policy meeting on Tuesday.

"The concern now is that we will get the first hints of not necessarily a rate increase but what kind of reductions the Fed envisions to its balance sheet, and that could be a trigger for rates to move higher," said Edward Meir, analyst with ED&F Man Capital Markets.