Gold drops on expectations of increase in Fed's rates

The price of gold declined moderately on Wednesday morning in anticipation of an increase in the discount rate of the US Federal Reserve System (FRS), Report informs, citing the auction data.

The price of June futures for gold on the New York Comex exchange fell by $4.77, or 0.25%, to $1,865.84 per troy ounce. July silver futures fell 0.18% to $22.624 an ounce.

Investors' attention on Wednesday is focused on the upcoming results of the Fed meeting. Analysts expect the regulator to raise the discount rate immediately to 0.75-1%.

The increase in the discount rate, among other things, is positive for the US currency, which may put additional pressure on the value of the precious metal, calculated in dollars.