Gold ends rally on Fed asset purchase cut expectations

Gold continues to fall from its three-week high on expectations that the US Federal Reserve will maintain its pace of cuts to its asset purchase programme when it concludes its two-day meeting tomorrow.

Gold climbed 1.7 percent last week as escalating tensions in Iraq and in the Ukraine spurred haven demand. Gold futures for August delivery climbed to a high of USD1,285.10. The six-day rally in gold prices represented the longest run since February, when prices rallied as Russia annexed Crimea.

Gold for immediate delivery is currently trading at USD1,267.20/oz after declining to a low of USD1,258.00 and is currently down 0.34 percent on the session.

Strengthening US macro data has increased convictions that the Fed’s federal open market committee will tomorrow vote to cut its monthly asset purchase programme by USD 10 bn to USD35bn.

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