Gold Bides Time As Federal Reserve Prepares To Meet

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...So if the Fed is about to embark on rate cuts this year, that should be supportive for gold going forward," said Michael Lewis, head of commodities research at Deutsche Bank.

Gold inched lower today ahead of a U.S. Federal Reserve meeting that may determine the course of interest rates and direction of the metal.

Spot gold was at $642.10/643.10 an ounce by 1100 GMT, against $642.60/643.60 late in New York on Monday, when it fell more than $2 on a firmer dollar and weaker oil prices.

"A low interest rate environment is very constructive for the market. So if the Fed is about to embark on rate cuts this year, that should be supportive for gold going forward," said Michael Lewis, head of commodities research at Deutsche Bank.

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