Gold softens ahead of US Fed's policy decision
Gold prices fell on Wednesday after hitting a two-week highs in the last session, as traders await the U.S. Federal Reserve's policy decision for an updated outlook on the economy and monetary tightening path.
FUNDAMENTALS
* Spot gold eased 0.1% to $1,928.79 per ounce by 0111 GMT, after hitting its highest since Sept.
5 on Tuesday. U.S.
gold futures dipped 0.2% to $1,950.
* As Treasuries wobble ahead of the Fed outcome, some investors are buying into the weakness, confident that a peak in interest rates will eventually lift the market for U.S. government debt.
* Treasury Secretary Janet Yellen said U.S.
growth needed to slow to a pace more in line with its potential rate to bring inflation back to target levels since the economy was operating at full employment.
* U.S. homebuilding plunged to a more than three-year low in August.
* Economic growth in developing Asia this year will be slightly lower than previously expected as the weakness in China's property sector and El Nino-related risks cloud regional prospects, the Asian Development Bank (ADB) said.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% on Tuesday.
