Gold drops ahead of Fed meeting
Adam Pike, News Editor
19 Mar 2014, 10:56 a.m.
After reaching a six month high, gold slipped back for the third consecutive trading session as investors wait for news from the latest Fed policy review meeting. The meeting will be Janet Yellen’s first meeting as chairwoman and analysts are predicting that the Fed will continue to reduce its quantitative easing by a further $10 billion, even though data suggests the U.S. economy is softening.
According to Joyce Liu, investment analyst at Philip Futures, the gold market is ultimately driven by the health of the U.S. economy.
"Whatever happens in the world, whether it's the Crimean crisis or China's bond default, they are temporary safe-haven hedges. Ultimately, the gold market will still revert to the U.S. economy. Investment demand in gold is highly driven by the state of the economy in the U.S."