Gold extended losses today ahead of the Federal Reserve’s meeting scheduled for today. The SPDR Gold Trust (NYSEARCA:GLD) is down 3% since Friday.
The weakness in the yellow metal is mostly due to readjustment of positions by investors as the Federal Reserve is set to begin its two-day policy meeting today. Though the central bank might not hike rates in the near term, its outlook for economic growth and rates will be of particular interest to the precious metals markets.
Fed likely to stay put
It is highly likely that the Fed will increase the rates gradually as the concerns surrounding the global economic environment remain. The divergent monetary policies between the U.S. and other economies will also prevent the Fed from hiking rates aggressively.
Later today, the data on retail sales and producer price inflation for February is set to release in the U.S. while the Empire State Manufacturing Index for March will also be announced today. Gold prices have fallen 4.5% since it breaching their 14-month peak of $1,287.80 this month.
After factoring in recent losses, gold prices are still up by 16% this year as growing uncertainty about the economy pushed investors’ appetite for the yellow metal up. Silver futures for March delivery shed 1.28% to $15.32.
In miners, B2Gold Corp (NYSEMKT:BTG) has announced that it has received Golf Prepaid Sales Financing approval for an amount of up to $120 million. Also, the company has announced that it has revved up the size of its Otjikoto Equipment Loan Facility.
Meanwhile, Alamos Gold Inc (USA) (NYSE:AGI) has been downgraded by RBC Capital Markets, which has trimmed down its outlook on the stock to ‘Sector Perform’ from ‘Outperform’. Gold Standard Ventures Corp (NYSEMKT:GSV) provided an update on its resources estimate. The company reported an increase in the Oxide Gold Resource at the Pinion Deposit.