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PRECIOUS-Gold inches lower ahead of U.S. Fed policy meet

Published 16/03/2021, 12:36 pm
© Reuters.
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March 16 (Reuters) - Gold prices eased on Tuesday, as investors turned to riskier assets on hopes of a quick economic recovery, while they awaited the outcome of a U.S. Federal Reserve policy meeting.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,732.32 per ounce by 0108 GMT, while U.S. gold futures GCv1 fell 0.05% to $1,728.20 per ounce.

* Fed policymakers are set to forecast that the U.S. economy will accelerate at the quickest rate in decades in 2021, with unemployment dropping and inflation increasing, as the COVID-19 vaccine initiative ramps up and a $1.9 trillion relief package is dispersed among households. Bullion was also pressured as the S&P 500 and Dow Jones Industrial Average closed at all-time highs on Monday. Asian stocks were set to open higher on Tuesday. .N MKTS/GLOB

* Longer-term U.S. Treasury yields fell on Monday, and the yield curve flattened. US/

* Andrew Bailey, governor of the Bank of England, said he was more hopeful about the economy, "with a strong dose of caution," and a recent increase in interest rates in capital markets was consistent with the chances of recovery from the COVID recession. Investors also eye the U.S. Commerce Department's February retail sales data due on Tuesday, following January's 5.3% surge.

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,050.32 tonnes on Monday from 1,052.07 tonnes on Friday. GOL/ETF

* Silver XAG= fell 0.2% to $26.22, platinum XPT= was down 0.1% at $1,211.91 and palladium XPD= dropped 0.1% to $2,385.23.

DATA/EVENTS (GMT) 0745 France CPI (EU Norm) Final MM, YY Feb 1000 Germany ZEW Economic Sentiment

March 1000 Germany ZEW Current Conditions

March 1230 US

Retail Sales MM

Feb 1315 US

Industrial Production MM

Feb

U.S. Federal Open Market Committee starts two-day meeting

on interest rates

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