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Gold softens ahead of US Fed’s policy decision

Gold prices fell on Wednesday after hitting a two-week highs in the last session, as traders await the U.S. Federal Reserve’s policy decision for an updated outlook on the economy and monetary tightening path.

FUNDAMENTALS

* Spot gold eased 0.1% to $1,928.79 per ounce by 0111 GMT, after hitting its highest since Sept. 5 on Tuesday. U.S. gold futures dipped 0.2% to $1,950.

* As Treasuries wobble ahead of the Fed outcome, some investors are buying into the weakness, confident that a peak in interest rates will eventually lift the market for U.S. government debt.

* Treasury Secretary Janet Yellen said U.S. growth needed to slow to a pace more in line with its potential rate to bring inflation back to target levels since the economy was operating at full employment.

* U.S. homebuilding plunged to a more than three-year low in August.
* Economic growth in developing Asia this year will be slightly lower than previously expected as the weakness in China’s property sector and El Nino-related risks cloud regional prospects, the Asian Development Bank (ADB) said. * SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% on Tuesday. [GOL/ETF]

* Swiss gold exports rose by 7.3% in August from July as higher deliveries to India and China offset lower supplies to Turkey, customs data showed.

* Chinova Resources, a unit of Shanxi Donghui Energy Group, has put its Australian copper-gold operations up for sale and hopes to have the deal done this year, a director at adviser BurnVoir Corporate Finance, which is handling the sale, said on Tuesday.

* Spot silver dropped 0.4% to $23.14 per ounce, platinum fell 0.4% to $935.45 and palladium rose 0.1% to $1,260.86.

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