Gold investors have switched their focus to Thursday's Federal Reserve meeting after the unsurprising results of the U.S. mid-term elections failed to nudge prices out of their current range.
Bullion for immediate delivery weakened 0.2% to $1,223.69/oz; lost 0.6% in previous 4 days. Bloomberg Dollar Spot Index little changed.
Fed officials are expected to keep interest rates unchanged at the penultimate gathering of 2018, with investors looking for clues about tightening next year. The strength of the U.S. dollar was one of the principle drags on the price of gold earlier in the year.
The Fed’s tone will give clues on 2019. While it will likely continue to describe U.S. growth and labor market as strong, reinforcing the outlook for a December hike, there may be tweaks to suggest less confidence in the need to raise rates three times next year, as officials projected in September. (sdm)