Gold Falls More Than 1% as Traders Await Fed Decision

Gold Falls More Than 1% as Traders Await Fed Decision

Gold prices fall more than 1% in afternoon trade in Europe, but are still poised for a modest weekly gain as the focus turns to the Federal Reserve’s upcoming policy meeting.

Futures are down 1.1% to $2,678.70 a troy ounce as investors book profits and in the aftermath of hotter-than-expected U.S. inflation data.

“We have reached the time of year when convictions are low, and positions are being held on a short leash, meaning any price reversal in both directions will quickly be met with position-squaring,” according to Saxo.