Gold Drops Ahead of Fed Meeting

Gold dropped 0.4 percent to hit $1,181.45 an ounce ahead of the US Federal Reserve’s two-day policy meeting, Reuters reported. The meeting will take place later today and investors will be paying attention, waiting for clues as to when the US central bank will raise rates. The looming Greek crisis also did little to boosst demand for gold assets.

“Gold is weaker because people are still thinking that the U.S. economy is recovering,” Citi strategist David Wilson said. “So people are focusing on those positives of the U.S. economy rather than the macro negatives of a Greek exit (from the European Union), given that the Athens crisis has been dragging on for a very long time.”

Gold futures for August delivery were down $4.90 an ounce to settle at $1,180.90.