Gold Drops to $1,359.98 an Ounce Before US Fed Meeting

This morning, gold fell $6.36, hitting $1,359.98 an ounce, as investors exercised caution prior to the US Federal Reserve’s upcoming meeting. Following the meeting, the Fed is expected to announce another $10-billion cut to its stimulus program; however, Reuters states that the central bank’s decision may have little impact on gold.

“In terms of our outlook, we doubt that the sanctions imposed by the West are over and suspect that the Europeans and the U.S. will gradually need to step up the pressure on the Russians, reluctant as they are to do so,” the news outlet quotes an INTL FCStone Inc. (NASDAQ:INTL) report as saying. “This will mean that the move higher in gold is likely not over, but perhaps just seeing a temporary setback.”