A rally in gold prices fizzled out Wednesday morning, even as the dollar hit monthly lows, ahead of a crucial monetary policy decision from the Federal Reserve.
The Fed is expected to keep interest rates at zero yet again, but traders will be looking for clarity on when the Fed intends to finally hike rates.
A summertime rate hike once seemed in the cards, but an economic lull and stubbornly low inflation could compel the Fed to hold off for a while.
The Commerce Department is scheduled to release its advance first quarter GDP report at 8:30 am ET. Economists expect first quarter GDP to slow to 1 percent quarter-over-quarter.
Gold for June delivery was down $7 at $1207 an ounce on the New York Mercantile Exchange. Silver was up a bit, near $17.
The material has been provided by InstaForex Company – www.instaforex.com