Gold falls as demand slows ahead of Fed decisions

Gold prices fell in European markets today, on their way to a third loss in the past four days as the demand for safe havens fell ahead of the Fed's decisions at the end of its monetary policy meeting, Which are expected to include clear evidence about the prospects for US interest rate cuts this year.

As of 10:35 GMT, Gold prices fell by 0.3% to trade at $1,342.45 per ounce from the opening of $1,346.36, with a high of $1,347.51 and a low of $1,341.80.

Gold prices rose yesterday by 0.6%, after two days of losses on corrections and profit-taking from a 14-month high of $1,358.14 per ounce.

The price of the yellow metal is currently falling, as investment demand for safe assets slows, and investors' relative risk appetite improves, reflected by the rise in most global equity markets.

The relative improvement comes amid growing hopes of near resolution to the trade disputes between the United States and China during the meeting that will bring US President Donald Trump with Chinese President Xi Jinping on the sidelines of the G20 meeting in Osaka, Japan next week.

The Federal Reserve will conclude its meeting on monetary policy about the appropriate measures to the developments in the US economy, amid strong prospects for US interest rates to remain unchanged at 2.50%.

The US Interest Rate, Monetary Policy Statement and Quarterly Economic Outlook will be released by 18:00 GMT, and Federal Reserve Chairman Jerome Powell will deliver a speech at 18:30 GMT.

Investors are looking for new evidence for the future of US interest this year, especially as there are strong prospects that the Federal Reserve will cut interest rates to counter the risks surrounding the economy, especially US trade wars against several countries.

Gold holdings in the SPDR Gold Trust Fund (The world's largest gold-backed fund) remained unchanged yesterday for the second day in a row at 764.1 metric tons, the highest level since April 3.