Gold held steady on Tuesday as the dollar stood firm ahead of the two-day U.S. Federal Reserve meeting beginning later in the day while simmering U.S.-China trade tensions kept investors nervous about risks to global growth.
U.S. gold futures were down 0.1 per cent at $1,203.10 an ounce.
“Gold is glued to the $1,200 see-saw levels with some short positions closing just in case the Fed does something unexpected, give some notion of a pause in the 2019 rate hike cycle,” said Stephen Innes, APAC trading head at OANDA, Singapore.
Investors await details from the two-day Federal Reserve meeting beginning on Tuesday when the U.S. central bank is expected to raise benchmark interest rates and shed light on the path for future rate hikes.
“A dovish inference could send gold prices above the critical $1,210 level. There’s a lot of cross-action inference on this week’s forward guidance from the Fed meeting,” he added.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.