Gold prices in 5-month low with Fed in focus

© Reuters.

Gold prices remained at a five-month low on Tuesday as investors continued to focus on the Federal Reserve's monetary policy meeting this week.
In the Comex division of the New York Mercantile Exchange, gold futures contracts fell by $ 3.00, or about 0.24%, to $ 1,243.90 a troy ounce by 11:40.
It is widely expected that the Fed will raise interest rates at its two-day monetary policy meeting that will close on Wednesday; currently two or three interest increases are expected next year, but worries about lukewarm inflation may change the outlook for 2018.
Gold is sensitive to movements in US rates, which increases the opportunity cost of having low-yielding assets such as yellow metal.
In addition, data released on Tuesday showed that producer price inflation in the US and its core reading rose as expected in November.
Still in the Comex division, silver futures contracts fell 0.32% and traded at $ 15.74 per troy ounce.