Gold Drops to $1,353.70 an Ounce as Investors Await Fed News

Gold dropped for the third consecutive session today, falling $1.94, to $1,353.70 per ounce, according to Reuters. Meanwhile, US gold futures sank $5, to $1,354 an ounce.

Investors are employing caution as they wait for the US Federal Reserve to make a policy decision following its two-day meeting today. The Fed is expected to continue cutting its stimulus program, a move that would hurt gold’s utility as a hedge against inflation.

“There are subtle signs of a possible slowdown in the recovery process in the U.S., but expectations are still that the Fed will go ahead with cutting monthly bond purchases by another $10 billion,” Joyce Liu, an investment analyst at Phillip Futures, told Reuters.