Gold extends losses ahead of Fed meeting

New York (Jan 28)  Gold futures drifted lower on Tuesday, with buyers shrugging off a disappointing report from Apple Inc. to ease back into the equity markets ahead of this week’s Fed meeting and as earnings season ramps up.

In electronic trading, gold futures for February delivery  shed $4.70, or 0.4%, to $1,258.70 an ounce. March silver  lost 6 cents, or 0.3%, to $19.74 an ounce.

Gold received a temporary boost after data showed a drop in U.S. durable goods orders data in December, but subsequently fell back. Gold on Monday finally ran out of gas, logging its first decline in three sessions, but still managed to finish above the day’s lows thanks to a lackluster U.S. stock market.

Standard Bank’s Walter de Wet said long and short speculative positions in gold have remained mostly unchanged, which suggests a big part of the recent gains came from physical demand. That, however, could change over the next month, he warned.

“The strong physical demand we are currently witnessing from Asia could ease in February, which could see gold push lower again,” de Wet said. “We view gold as a sell into rallies in February.”

Elsewhere in metals trading, platinum for April delivery   fell $3, or 0.2%, to $1,418.10 an ounce while March palladium   declined $2.45, or 0.3%, to $720.10 an ounce. High-grade copper for March delivery   was little changed at $3.26 a pound.