Gold prices plunge but still over threshold level
Gold prices in Asia went down on Tuesday but still over $1,500 level.
Gold Futures dropped 0.4% ($1,505.05) before the market closes on Tuesday.
In the previous session, the yellow metal rose after the news about Saudi Arabian oil installations coordinated strikes broke out. This news triggered investors to go for a safe bet that worked in the advantage of almost all haven assets and commodities.
The .S. Federal Open Market Committee is set to hold its regular meeting on Tuesday and Wednesday as the Federal Reserve is expected to cut rates by 25 basis points. However, retail sales that went higher than forecasted along with consumer sentiment data released on Friday downplays the possibilities of cutting rates.
The decision will be made known by Fed Chairman, Jerome Powell as he holds his post-decision press conference on Wednesday.
“Given that the market is pricing in additional 60bp of cuts by end-2020, forward guidance will be key,” said analysts at TD Securities.