Prices on the precious metals market again exhibit a negative trend on Wednesday morning, which indicates that the market is again facing serious problems. The main attention of market participants is still directed towards the US Federal Reserve System, which is due to present the results of its meeting, which lasted for the last two days, later this evening.

Gold futures contracts for February delivery on the electronic trading platform in New York dipped 0.28% or $5.25, to $1845.6 per troy ounce. At the same time, support for the precious metal was at $1836.3 per troy ounce, and resistance at $1874. 6 per troy ounce.

Silver futures for March delivery sank 0.59%, to $25.387 per troy ounce.

The price of copper futures contracts for March delivery also slightly dipped by 0.14%, to $3.6113 per pound.

For the rest of the week, market participants will be concerned about the situation around the Fed. They do not expect any drastic changes in the current monetary policy from the regulator. According to the assumption, the Fed will not change the level of the base interest rate, which is still at an extremely low level from 0 to 0.25% in annual terms. Also, the government bond buyback program is unlikely to change. At least there is no specific indication for that. Thus, the country will maintain a very soft monetary policy, which will promote growth in the precious metals market.

However, the decision on the expansion of the financial stimulus package in the US is an entirely different question. Most experts still believe that the Fed will not be on the side of such broad gestures from the government, which means that all the signals of the regulator will be aimed at preventing this sensational program from being implemented. Moreover, there are radical opinions that the results of the last meeting can at least approximately hint at the expiration date of the soft monetary policy of the regulator. Most likely, this will happen much earlier than previously planned. In this case, the precious metals market may, on the contrary, find itself in a rather tricky situation, which will negatively affect gold quotes.

Thus, the results of the current meeting of the Federal Reserve are very important for the precious metals market, which has recently been unable to find a foundation and a basis for increasing value. Literally, everyone lacks clarity, especially since the main problem of the global economy remains unresolved. The point is that the epidemiological situation of the coronavirus pandemic in the world continues to deteriorate and there is practically no chance to quickly cope with the infection. Even high hopes for mass vaccination are not yet fully justified, which means that the economic crisis will worsen.