Por Sethuraman NR
Apr 28 (Reuters) – Gold prices fell to a week low on Wednesday, pressured by rising U.S. Treasury yields and a stronger dollar before the Federal Reserve announces its decision to trade. monetary policy later in the day.
* Spot gold was down 0.7% at $ 1,764 an ounce at 0931 GMT, after hitting its lowest level since April 20 at $ 1,762.50. Gold futures in the United States were down 0.8% at $ 1,764.50 an ounce.
* “Gold failed to break above $ 1,800 and is basically slowing down. We see a scenario where US yields and the dollar are recovering, which is negative for gold,” said Carlo Alberto De Casa, chief analyst at ActivTrades.
* “If the Fed gives any guidance on yields, there could be a significant move for gold. Otherwise, I expect gold to remain in the $ 1,750 to $ 1,800 range,” he added.
* Benchmark 10-year US Treasury yields rose to their highest level since April 13, increasing the opportunity cost of holding bullion.
* The dollar index rose 0.1% against its rivals, making gold more expensive for holders of other currencies.
* The market expects Fed Chairman Jerome Powell to reaffirm later Wednesday that expansionary monetary policy will continue for an extended period and dismiss any suggestion to reduce bond purchases.
* Analysts and traders have cut their forecasts for the price of gold, with many believing it is unlikely to return to last year’s all-time highs as the economic recovery tarnishes the metal’s appeal as a safe haven, a survey from Reuters.
* Among other precious metals, palladium fell 0.5% to $ 2,927.84 an ounce, after hitting an all-time high of $ 2,962.50 on Tuesday. Silver was down 1.1% at $ 25.97 an ounce and platinum was down 0.9% at $ 1,218.
(Report by Nallur Sethuraman in Bengaluru; Edited in Spanish by Ricardo Figueroa)