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LONDON (Scrap Monster): Gold futures have tumbled ahead of the outcome of a Federal Open Market Committee meeting, with observers citing growing ideas that policy-setters won’t undertake any aggressive easing, at least yet.

As per Afshin Nabavi, head of trading with MKS Finance, “Ahead of the FOMC, we had a bout of long liquidation on the open in New York. A lot of people are thinking this time around they will not do anything.”

Economic data has softened since early in the year, spurring hopes for easing at some point, although the most recent congressional testimony from Federal Reserve Chairman Ben Bernanke did not hint at an imminent easing.

According to Edward Meir, commodities consultant with INTL FCStone, “it seems that investors are already re-examining their view that the Fed may ‘ride to the rescue’ as gold, base metals and oil prices are all generally lower.”

His own firm anticipates the Fed may stand pat with the Fed likely to “watch and wait.”

And many Fed watchers expect more “Operation Twist,” which is the selling of short-term securities in order to buy longer-term ones. This does not expand the Fed’s balance sheet and is not as “potent” as further quantitative easing, Meir added.

As of 9:18 a.m. EDT, Comex August gold was $16.60, or 1%, lower at $1,606.60 an ounce.