Gold is trading sideways ahead of FOMC

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.

Reuters

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes