Gold prices fall as Treasury yields firm

Gulf Today Report 

Gold prices dropped on Wednesday following firm US Treasury yields as investors await the outcome of the Federal Reserve policy meeting later in the day.

Spot gold was down 0.5% at $1,767.66 per ounce by 06:25 GMT while US gold futures eased 0.6% to $1,769.00 per ounce.

According to IG Market analyst Kyle Rodda, the market will be "looking for signals that maybe the Fed is starting to think about tapering or when they should taper.”

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Analysts and traders have reduced their gold price forecasts following scepticism about returning to last year’s record highs as economic recovery reduce the metal’s appeal.

Goldman Sachs analysts see gold prices at $2,000 an ounce over the next six months and said it was too early for bitcoin to compete with gold for safe-haven demand.