Commodities: Gold sinks ahead of Fed meeting
Gold prices receded to a four-year low ahead of the Federal Reserve meeting as investors buckled under expectations the policy-making committee will prepare markets with a hike in interest rates.
Gold futures for April delivery fell 0.4% to $1,148.20 an ounce, but $1,142 earlier on. According to CMC Marketsanalyst Jasper Lawler, “gold was surprisingly volatile for the first day of the Fed meeting”.
Meanwhile, Brent futures fell 1.3% to $53.25 at the end of Tuesday’s session, while ICE WTI futures decreased 3.1% to $42.51.
Lawler added: “Commodities were falling together on a strong dollar and the weak growth outlook from China that prompted the Chinese Premier to suggest more easing may be on the way.”
Over on LME, three-month copper futures decreased 1.8% to $5,759.00 a tonne, after data showed US housing starts dropped 17% in February.
IG analyst Alastair McCaig said: “Today’s housing starts out of the US have seen a renewed sell-off in copper as the American housing market struggles to keep momentum.”
Source: Sharecast – Commodities: Gold sinks ahead of Fed meeting
