Gold futures on Tuesday morning were trading around the break-even line, as the precious metal attempted to avoid a four-session slide, which would mark its longest string of declines in over eight months.
Investors will be keying in on a the start of the Federal Reserve’s two-day policy session later Tuesday which may reveal further insights about the health of the U.S. economy amid the COVID-19 pandemic at the conclusion of the closely watched gathering on Wednesday.
“Any further macro data or words from central bankers that suggest new monetary stimulus would be seen as positive news for the yellow metal,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a daily note.
Bullion trade has been sensitive to expectations for further government spending as the administration of President Joe Biden aims to promote a $1.9 trillion COVID relief package, which is viewed as bullish for gold investors. The yellow metal also has tended to move in step with weakness in the U.S. dollar and vacillations in government bond yields, which compete with bullion for haven demand.
At last check, February gold was off $2.80, or 0.2%, at $1,852.30 an ounce, after a nearly 0.1% slide on Monday. A decline on Tuesday would represent its longest streak of lower settlements since a five-session slide ended April 30.
Silver for March delivery was shedding 3 cents, or 0.2%, at $25.45 an ounce, following its 0.3% decline in the prior session.