(Before It's News)
MTECHTIPS:-Gold falls sharply, as investors await next move from the Fed
Gold fell sharply on Tuesday, extending sharp losses from the previous session, as the Bank of Japan left interest rates unchanged at a closely-watched meeting ahead of the Federal Reserve’s latest interest rate decision on Wednesday afternoon. On the Comex division of the New York Mercantile Exchange, gold for April delivery traded in a broad range between $1,226.50 and $1,238.60 an ounce before settling at $1,232.10, down 12.80 or 1.03% on the session. Gold has closed lower in three straight sessions and six of the last seven. After surging to 13-month highs at $1,280 last week, the precious metal has fallen more than 2%. Despite the considerable losses, Gold is still on pace for one of its strongest opening quarters in nearly 30 years. Gold likely gained support at $1,063.20, the low from January 4 and was met with resistance at $1,280.70, the high from Mar. 11. As expected, the Bank of Japan left short-term interest rates unchanged on Tuesday, weeks after startling markets by surprisingly lowering rates into negative territory for the first time in the history of the central bank. In a 7-2 vote, the BOJ held its benchmark rate steady at Minus-0.1%, while also leaving its target for its monetary base unchanged. In U.S. afternoon trading, USD/JDY traded at 112.95, down 0.77% on the session. Since opening 2016 at ¥120.33, the dollar has fallen more than 6% against the yen.
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