Gold slips ahead of Fed meet; fund outflows weigh on sentiment
By A. Ananthalakshmi
SINGAPORE (Reuters) – Gold fell further from a three-week high on Tuesday as investors withdrew money from the top bullion fund at the fastest pace in two months and as markets nervously waited for a Federal Reserve meeting this week.
Spot gold fell 0.6 percent to $1,264.30 an ounce by 0649 GMT. The metal hit a three-week top of $1,284.85 on Monday before closing down 0.4 percent on profit taking.
The Fed's two-day policy meeting begins later in the day with a statement expected on Wednesday. Markets are on the watch for any signals on when the central bank might begin raising interest rates.
Investor sentiment was bearish as holdings of SPDR Gold Trust, the top gold-backed exchange traded fund, dropped 4.20 tonnes to 782.88 tonnes on Monday – near a five year low.
The decline is the biggest outflow since mid April.
(Editing by Himani Sarkar and Richard Pullin)