Gold prices fell today as the US dollar rose slightly ahead of the results of the April policy meeting of the Federal Reserve, which is set to conclude later this afternoon. The Fed’s comments will be closely watched for hints of additional stimulus.
It has been speculated that the Fed may consider launching a third round of quantitative easing after the March non-farm payrolls report from the Department of Labor showed that the US economy created only 120,000 jobs last month.
However, the Fed is currently not expected to make any adjustments to its current monetary policy.
Further stimulus would weaken the US dollar, while lifting demand for gold, which is seen as an alternative asset to the greenback.
Gold traded at US$1,638/oz this afternoon, down US$3 from Tuesday’s close. Silver declined 16 cents to US$30.67/oz, while platinum went against the tide, rising US$6 to US$1,547/oz.
Today’s top risers in the sector were:
ECR Minerals (LON:ECR), up 21.5 percent at 0.925 pence at midday
Oxus Gold (LON:OXS), down 9.5 percent at 3.2 pence
Yamana Gold (LON:YAU), down 5 percent at 902.5 pence
Hambledon Mining (LON:HMB), down 4 percent at 1.85 pence
Petropavlovsk (LON:POG), down 4 percent at 470.7 pence
The top fallers were:
Alecto Minerals (LON:ALO), down 12.5 percent at 1.4 pence at midday
Touchstone Gold (LON:TGL), down 7.5 percent at 17.1 pence
Anglo Asian Mining (LON:AAZ), down 5 percent at 34.37 pence