Mar 16, 2022 01:08AM ET
By: AnalysisWatch
Gold prices were down in Asia on Wednesday morning, hovering near a two-week low.
As investors stayed away from big bets, they awaited the latest Federal Reserve decision.
Gold futures fell 0.59% to $1,918.030 an ounce by 1:04 PM ET, with the yellow metal little changed after hitting its lowest since March 1, or $1,906, in the previous session.
US government bond yields climbed to their highest level in more than two and a half years on Tuesday ahead of the Federal Reserve's decision due later in the day. The Fed is widely expected to raise interest rates.
On the other side of the Atlantic, the Bank of England will announce its monetary policy decision on Thursday. At a conference on the same day, European Central Bank President Christine Lagarde, Executive Board member Isabel Schnabel, ECB Governing Council member Ignazio Visco, and Chief Economist Philip Lane will speak at a conference on the same day.
The Bank of Japan will announce its own monetary policy decision a day later.
US President Joe Biden will travel to Europe the following week for his first visit since Russia invaded Ukraine on February 24, 2014. According to the White House on Tuesday, the President will discuss the crisis in Ukraine with NATO allies during his visit.
Meanwhile, the number of Ukrainian refugees has risen to 3 million as Russia continues its airstrikes.
The Central Bank of the Russian Federation (the Bank of Russia) also said it would suspend gold purchases from banks from Tuesday to meet increased household demand. This is the latest attempt by the central bank to deal with the impact of Western sanctions on Russia.
Holdings in the SPDR Gold Trust fell 0.2% to 1,061.8 tonnes on Tuesday.
Palladium rose 0.5% but remained close to a two-week low reached on Monday, as supply concerns eased.
Silver gained 0.2% and platinum rose 0.1%.
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