Gold Price Eases on Nervous Wait for US Fed Interest Rate Decision

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Gold fell on Friday as investors turned cautious about next week's rate-setting decision by the Federal Reserve, while Tokyo's yen-based futures edged up on a weaker yen.

Gold fell on Friday as investors turned cautious about next week's rate-setting decision by the Federal Reserve, while Tokyo's yen-based futures edged up on a weaker yen.

Gold hit a 16-month high of $714.20 on Tuesday, extending its gains after a bleak U.S. jobs report last week raised chances of a rate cut by the Fed, dragged down the dollar and stocks and helped lure investors to bullion as safer investment...

The squeeze in money markets and signs of a deeper U.S. housing downturn have convinced market players that the Fed next week will cut rates by at least 25 basis points and possibly 50 basis points from the current 5.25 percent...

A smaller-than-expected cut at the Fed's Sept. 18 meeting could do more harm than good to gold, if it buoys the dollar, analysts said.

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