Gold prices drop toward $1.6k as all eyes fall on policy makers

The price of gold was hovering about the milestone mark of $1,600 per troy ounce on Wednesday as investors and traders increased scrutiny of the policy makers with the U.S. central bank as the body wrapped up two days of meetings, according to Reuters.

The body is projected to announce it has decided to deploy another round of economy-spurring measures, such as one similar to "Operation Twist." That strategy sees the U.S. Federal Reserve prolong the purchase of bonds beyond the deadline of June. The likelihood of a third round of quantitative easing, more colloquially known as "QE3," is of decreasing probability, one analyst told the news source.

"It's most likely we will get an extension to Twist and an 'open door' to further stimulus, but no QE3 as such," analyst Andrey Kryuchenkov with VTB Capital told Reuters. "Markets could well be disappointed."

At 10:58 a.m. on Wednesday, gold futures fell 1.31 percent, a $21.30 loss to $1,601.90 per troy ounce.

The Wall Street Journal reports losses to gold were attributable to anticipations that the central bank will leave economic policy intact.