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Gold Holds in Anticipation of Fed Meeting

Written By Brian Hicks

Posted January 29, 2013

In view of Wednesday’s upcoming Fed meeting, and of the U.S. nonfarm payroll numbers to emerge later this week, gold dipped very slightly on Monday, holding in anticipation of news later this week.

This occurred despite news that over in Russia and Turkey, gold reserves rose through December, indicating the general market’s keen focus on the U.S. economy. Meanwhile, Iraq’s holdings dropped sharply—by a fourth—in November.

Spot gold reached $1,654.50/oz, down 0.2 percent. That comes after last week’s drop of 1.5 percent. Gold futures for February on the U.S. Comex touched $1,652.90/oz, down $3.70.

It’s widely expected, per Reuters, that the Wednesday meeting of the Federal Open Market Committee as well as the payroll data this week will guide gold’s near-future performance, so right now gold is simply in a holding pattern.