Gold prices slipped before two key meetings: a policy update from the U.S. Federal Reserve and a gathering of euro-area finance ministers to discuss Greece’s intensifying debt crisis.
The Fed meets in Washington on Tuesday and Wednesday to plot monetary strategy and update economic forecasts. Investors will scrutinize the central bank’s comments for any indications as to when it will raise borrowing costs for the first time since 2006.
While European finance ministers will meet in Luxembourg on June 18, Greece has no plans to present new proposals to unlock aid, Finance Minister Yanis Varoufakis told Bild newspaper. The country needs to seal an accord or get an extension before the euro area’s bailout expires on June 30, or risk missing payments on its debt of about 313 billion euros ($352 billion).
Bullion for immediate delivery slipped 0.3 percent to $1,182.87 an ounce at 11 a.m. in London, according to Bloomberg generic pricing. The precious metal swung between losses and gains earlier on Tuesday. Bullion for August delivery fell 0.3 percent to $1,182.20 on the Comex in New York, where futures trading volume was 28 percent below the 100-day average for the time of day.
Assets in gold-backed exchange-traded products retreated 2.8 metric tons to 1,584.9 tons as of Monday, declining for a second session to the lowest since March 2009.
Source : Bloomberg