Gold prices dipped marginally over the last two days as markets awaited the outcome of the ongoing meeting of the US Federal Reserve’s Open Market Committee (FOMC) which is expected to issue a statement later in the day. However, the dip was marginal with gold trading at about US$ 1247.7 per ounce, after having reached a four week high of US$ 1252.48 during trading hours on Monday.

Analysts do not expect any change in interest rates, nor a significant shift in approach or fresh policy announcements from the meeting, but there could be some indication of steps that the body will plan for later in the year. Fed Chair Janet Yellen has earlier indicated that the Fed would have two rate revisions more in 2017, and was also looking to reduce its holdings in bonds as the US economy improves.

Over the past few months, a stronger dollar and improving equity market have seen gold prices drop somewhat after a strong start to the year. However, given the overall uncertainty on both political and economic fronts, the shifts have not been overly dramatic, analysts said. It was pointed out that over the past four months, the prices have only moved in a range of 7.6% which is the smallest over the past 10 years, while the 120-day volatility is at the lowest since 2005.