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MTECHTIPS:-Gold struggles for direction as markets look ahead to BOJ, Fed
Gold futures struggled for direction in European trade on Monday, flipping between small gains and losses as investors looked ahead to central bank meetings in Japan and the U.S. later this week for further clues on monetary policy. Gold for April delivery on the Comex division of the New York Mercantile Exchange shed $3.70, or 0.29%, to trade at $1,255.70 a troy ounce by 07:45 GMT, or 3:45AM ET. The Bank of Japan’s latest monetary policy announcement is due during Asian morning hours on Tuesday. Central bank Governor Haruhiko Kuroda will hold a press conference afterward. The BOJ is widely expected to stand pat on monetary policy after January’s shock decision to adopt negative rates, but some speculate it could still cut rates deeper into negative territory as part of its ongoing effort to reflate a stagnant economy. Meanwhile, the Federal Reserve is not expected to take action on interest rates at the conclusion of its two day policy meeting at 18:00 GMT, or 2:00PM ET, on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates. Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed’s statement, as investors look for any change in tone about the economy or future rate hikes. Many in the market anticipate the pace of increases to be gradual amid concerns over tepid growth overseas and divergent monetary policies between the U.S. and other nations. On Friday, gold prices rallied to a 14-month high of $1,287.80 after European Central Bank President Mario Draghi rolled out fresh stimulus measures, including increased asset buying and a deeper cut to deposit rates, but signaled there would be no further rate cuts
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