Gold Holds Steady As Fed Statement Awaits

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Gold prices are experiencing minor pressure ahead of the Federal Reserve meeting later today. The yellow metal prices are hovering around $1,230 as Gold Futures for April delivery traded down by 0.16% to 1,229.

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Fed direction may dictate gold prices

Though interest rates are not expected to be changed, the statement by the Fed is awaited for what it may signal for the future. The Fed had announced the first rate hike in a decade in December last year. However, intense volatility in oil and equities prevented the Fed from tightening further.

Gold prices rose 16% this year on weak global cues. The metal made a high of $1,282.51 this month but trade has been volatile in the metals.

The SPDR Gold Trust (ETF) (NYSEARCA:GLD) reported a rise in its holdings by 2.1 tonnes, which marks the fund’s biggest one-day build since December. In other metals, Silver Futures for May delivery rose 0.03% to 15.265 during the day.

KGC gives over-allotment update

Among gold mining stocks, Agnico Eagle Mines Ltd (USA) (NYSE:AEM) reached an agreement, under which it will allot 11.68 million common shares of Belo Sun Mining Corp through a private placement. The subscription price is fixed at $0.53 per share for a total consideration of $6,190,400. The shares denote a nearly 3.24% share of Belo Sun while the closure of the deal is likely to happen today.

Newmont Mining Corp (NYSE:NEM) has reportedly concluded the sales of its equity stake in Regis Resources Ltd. The company received a total sum of $182 million through the stake sale. The move represents the company’s efforts to trim down debt and enhance its balance sheet.

On the other hand, Kinross Gold Corporation (USA) (NYSE:KGC) shared the exercise of an over-allotment option for its public offering of 83,400,000 shares. The exercise of the option will boost the gross proceeds of the company by as much as $37,530,000.

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