Gold is cheaper in anticipation of the outcome of Fed meeting

Gold prices fall, as investors were waiting the U.S. Federal Reserve statement on the results of a two-day meeting.

A series of weak U.S. economic indicators raised hopes for an extension of the Fed program to buy out long-term bonds, which ends in late June. The new incentives will help keep the low interest rates, which favorably affect the gold market as an asset that is profitable percent.

According to the survey 49 economists conducted by Reuters in early June, the likelihood of new stimulus measures by the Fed is equal to 45 percent. Participants in a survey conducted on May 15, this possibility was evaluated in only 30 percent.

Stocks of the world's largest gold ETF-secured fund SPDR Gold Trust rose in June by 11.4 tons and by the end of the month may show the highest growth since February.

Demand for gold in India - its biggest customer - is low because of the weak rupee. Jewelers are watching the monsoon season, which set the tone for future demand in the holiday season.

The June gold futures on the COMEX today fell to 1598.6 dollars per ounce.