Gold was trading in a tight range on Tuesday ahead of a two-day rate-setting meeting by the US central bank, with investors awaiting clarity on whether a next round of US tariffs on Chinese goods will come into effect this weekend. Spot gold was up 0.1% to $1,462.97 per ounce by 0734 GMT. US gold futures rose 0.2% to $1,467.30.
"Both the events could be potential catalysts for gold, prices could go down if Fed is more hawkish biased. However, in case the US and China can't reach any resolution and tariffs kick in, traders will move back to the safe-haven gold," said Margaret Yang Yan, a market analyst at CMC Markets.
Both the United States and China have adopted a reconciliatory tone, with China saying it hoped to make a deal as soon as possible. President Donald Trump has said he was working with Beijing on an agreement ahead of new tariffs on $156 billion worth of Chinese imports on Dec.15.
"Given that we are tilting toward some sort of the deal being reached with the Chinese, we think both gold and silver will struggle going into year-end and see a lower trading range for both over the next few weeks," said Edward Meir at ED&F Man Capital Markets in a note.
The impact of a prolonged trade war on economic growth has led the US Federal Reserve to cut rates three times this year, sparking demand for bullion. Gold is now on track for its best year in almost a decade. Spot gold is expected to test a support at $1,455 per ounce, a break below could cause a fall to $1,440, said Reuters technical analyst Wang Tao.
Comments
Comments are closed for this article.