Gold hedge funds edgy ahead of Fed's meet

Bullion updates:

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.03 % to 703.98 tonnes on Friday, the lowest since 2008 due to US Fed meeting on interest rate policy.

According to US Commodity Futures Trading Commission data, hedge funds and money managers slashed their net long stance in gold during the week ended June 9.

How can Fed impacts on Yellow metal:

The Fed will commence its two day meeting tomorrow with an announcement to be released on Wednesday.

A rate hike could diminish demand for non-interest-paying gold, while boosting the dollar. Investor positioning showed the markets were cautious about gold's price outlook.