Gold slips ahead of Fed rate decision
Shafaq News
Gold prices fell on Tuesday, pressured by a stronger dollar, while markets looked to the Federal Reserve's upcoming policy decision for clues on the interest rate outlook.
Spot gold fell 0.7% to $4,045.89 per ounce by 0448 GMT after rising as much as 1% on Monday. U.S. gold futures for August delivery lost 0.8% to $4,046.20.
The dollar held near a one-month high, making greenback-priced bullion more expensive for holders of other currencies.
"We're oscillating in this narrow range between $3,950 and $4,200, and I think the market is just waiting for Fed signals," said Ilya Spivak, head of global macro at finance content network Tastylive.
The U.S. Federal Reserve will conclude its two-day policy meeting on Wednesday. Expectations that the Fed will hold interest rates steady stand at 62%, while 38% of market participants expect at least a 25-basis-point rate hike, according to CME FedWatch, that is up from 16% a week earlier.
Markets are pricing in an 81% chance for a hike at the central bank's September meeting.
President Donald Trump on Monday called on the Fed to lower interest rates, saying the U.S. should have the lowest interest rate in the world.
Trump also said on Monday that the United States was having "good talks" with Iran and there was a chance of a deal to resolve their conflict, but warned that strikes would resume if negotiations failed to deliver.
Tehran appeared to quickly test the pause in the U.S. military campaign, with Saudi Arabia, Jordan and Iraq reporting drone attacks on Monday.
Spivak added that if the Fed meeting generates language that's not setting the groundwork for a rate hike in September, gold is likely to rally above $4,200 per ounce.
Spot silver fell 2% to $57.23 per ounce, platinum lost 0.9% to $1,605.93 and palladium slid 1.6% to $1,270.97.
(REUTERS)
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