Gold Prices Slide to 2-1/2-Week Low

Gold prices slumped to their lowest level in more than two weeks on Wednesday, following a report that Republican senators were leaning towards John Taylor to be the next Federal Reserve chief.

U.S. President Donald Trump used a luncheon with Senate Republicans on Tuesday to get their views on who he should tap to be the next head of the central bank, according to senators who attended.

A source familiar with the matter said Trump polled the Republicans on whether they would prefer Stanford University economist John Taylor or current Fed Governor Jerome Powell for the job, and more senators preferred Taylor.

Taylor is seen as someone who may put the Fed on a path of faster interest rate increases compared to current Fed chair Janet Yellen, whose term expires next February.

In an interview aired in recent days, President Donald Trump said he is "very, very close" to making his decision.

That helped send U.S. 10-Year Treasury note yields to their highest since March, supporting the dollar and dampening the appeal of bullion.

Stefan D. Angelov - Head of Stocks Trading

Read more:

• What To Expect From FED’s Policy Meeting Today At 1800 (GMT)
• How to trade the new FED chair appointment?
• What to Watch Tuesday: Federal Reserve Meeting Begins
• Dennis Lockhart expects cautious and patient approach to rate hikes
• Most important from the FOMC meeting minutes