DHAKA: Gold edged lower on Tuesday as the US dollar recovered, retreating from a five-week high as investors started to factor in expectations that the United States Federal Reserve will maintain its stimulus measures well into early next year.

The Fed begins a two-day policy meeting on Tuesday in which it is widely expected to confirm it will continue buying bonds at the rate of US$85 billion a month.

Many economists believe the Fed could push tapering to early next year, reports The Straits Times.

Spot gold was down 0.5 percent to US$1,344.64 an ounce by 1104 GMT.

It hit its highest since September 20 at US$1,361.60 in the previous session, supported by weaker than expected US data reinforcing the view that the US economy is not yet strong enough for the Fed to start tapering monetary stimulus.

US gold futures for December delivery were down by US$7.30 an ounce at US$1,345.10.

‘We had decent gains yesterday and a bit of profit-taking was to be expected,’ VTB Capital analyst Andrey Kryuchenkov said.

‘The main focus remains on the Fed and the market seems to have factored in the central bank will not change its current accommodative stance.’

BDST: 2007 HRS, OCT 29, 2013
RoR/GCP