Gold continues slide ahead of Federal Reserve's decisions

Gold prices fell on Wednesday, to deepen losses for the second day, as the US dollar continued to rise against its rivals, ahead of the Federal Reserve's rate decision after the conclusion of the first monetary policy meeting in 2021.

Gold prices fell more than 0.4% to $1,842.97 an ounce, after opening at $1,851.01 and hitting a low of $1,853.15.

The yellow metal gained 0.3% yesterday, and posted its third daily loss in 4 days as the US dollar rose.

The US dollar index rose over 0.25% against a basket of major currencies today, which weighs down on the prices of gold and other dollar-denominated metals.

The US dollar is shining as the best alternative investment, due to renewed concerns about the global economy and rising coronavirus infections in most parts of the world.

The Federal Reserve will unveil its rate decisions later today, amid broad expectation to keep the interest rates unchanged at 0.25%.

At of 19:00 GMT, the Fed will unveil its monetary policy statement and economic outlook, and Chairman Jerome Powell will deliver a speech at 19:30 GMT.

The first Fed meeting in 2021 is expected to provide key insight on the future of the US monetary policy, with President Biden's new approach in mind.

Gold stocks at the SPDR ETF fell 0.87 metric tonnes yesterday, with the total at the lowest level since January 14 at 1,172.38 MT.