Forexpros – Gold prices fell in Asian trading Wednesday after the U.S. Federal Reserve left interest rates unchanged, gave a fairly positive view of the economy but made no allusions to a need for more stimulus monetary policy tools, such as quantitative easing.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded down 1.10% at USD1,675.55 a troy ounce.
Gold futures were likely to test technical support at USD1,614.61 a troy ounce and resistance at USD1,743.61.
The Fed on Tuesday left benchmark interest rates unchanged and said unemployment rates, while still elevated, were improving.
The Fed made no mention of a need to consider extraordinary monetary policies such as quantitative easing, which are asset purchases from banks designed to stabilize prices and spur job creation.
Furthermore, government data showed U.S. retail sales rose to the highest level in five months in February, increasing by a seasonally adjusted 1.1%, in line with expectations.
Core retail sales, which are stripped of automobile sales, rose by 0.9% in February, above expectations for a 0.8% gain.
News that 15 out of the top 19 banks in the U.S. passed Federal Reserve stress test bolstered the dollar as well.
The tests show the banks were able to hold up well under duress.
The news was bullish for the dollar and bearish for the dollar’s traditional hedge, gold.
Elsewhere on the Comex, silver for May delivery was down 0.60% and trading at USD33.378 a troy ounce, while copper for May delivery was down 0.08% and trading at USD3.909 a pound.
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