Gold trades near the lowest level in two weeks on Wednesday, as investors awaited the outcome of the Federal Reserve’s two-day policy meeting.
The precious metal hit a low of $1229.59 an ounce, while currently trading slightly lower around $1232.04.
Gold slipped this week after hitting a 13-month high of $1283.17 on Monday, where it dropped over the previous three sessions.
It seems that gold has found strong support at $1225, where comments from Fed Chair Janet Yellen will probably weigh on the metal’s movements.
Asian shares ended on a mixed note, amid uncertainty ahead of the Fed statement and press conference due later in the day.
Investors will look far any clues about path of monetary tightening this year amid the turbulence in financial markets and low inflation.
Analysts predict no rise in the borrowing cost this month, but the Fed will provide its latest outlook for growth and inflation.
Reports released on Tuesday from the U.S. signaled a drop in both retail sales and producer prices in February, adding to expectations the Fed would stand pat on its monetary policy today.
The dollar soared against a basket of major currencies from a high of 96.97, while currently hovering around 96.84, according to the dollar index.
