Precious Metals Preview: COMEX Gold Lower As Yields Firm Ahead Of Fed

4 May 2022 , 09:51 AM

Gold futures are trading lower near $1865 levels as sentiments stay cautious ahead of the Federal Reserve policy decision. The yellow metal continues to stay near a three month low as US treasury yields firm to 3% mark as Fed is widely expected to announce a big interest rate hike in an effort to curb high inflation. As per reports, the U.S. Federal Reserve is expected to raise interest rates Wednesday for the second time since 2018, boosting the fed funds target rate by a half-percentage point. The central bank is also expected to launch a program to reduce its massive bond holdings by $95 billion a month, starting in June. Meanwhile, the dollar index, that measure the greenback against a basket of currencies remain close to 20-year highs further weighing down the previous metal.

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