XAUUSD Declined Before US Data and Fed Reserve

by on July 30, 2014 12:12 pm GMT

XAUUSD declined after falling the previous two days. Gold’s investors weighed signs of an improving U.S. economy against tension over Ukraine and in the Middle East.

The Federal Reserve concludes a two-day meeting today. Data are forecast to show the U.S. economy rebounded last quarter, and the dollar reached an almost eight-week high against 10 major currencies. Interest-rate increases may come “sooner and be more rapid than currently envisioned” if the labor market continues to improve more quickly than anticipated, Fed Chair Janet Yellen told lawmakers this month.

Gold for immediate delivery was little changed at $1,299.38 an ounce by 9:38 am GMT. Prices fell 0.4 percent yesterday, retreating from a one-week high of $1,312.27. Gold for December delivery was little changed at $1,300.80 on the Comex in New York.

Geopolitical tensions helped gold gain 8.1 percent this year. The U.S. and European Union sought to put more pressure on Russia by targeting banking, energy and defense industries for sanctions in another attempt to get President Vladimir Putin to back down in Ukraine. Hamas’s military chief ruled out a truce in the Gaza Strip until Israel lifts its blockade of the Palestinian territory, as the military’s bombardment intensified.