Gold little changed on trade caution; markets eye Fed meet

Gold little changed on trade caution; markets eye Fed meet

09 Dec 2019 11:04 AM
 

Investors await U.S. Fed meeting starting on Tuesday, China's November imports rose, SPDR Gold holdings fell 0.3% on Friday; lowest since Sept. Gold was steady on Monday as investors await cues from the U.S. Federal Reserve on interest rates later this week, while trying to size up the chances of a new round of U.S. tariffs on Chinese goods. Spot gold was flat at $1,460 per ounce U.S. gold futures was flat at $1,464.50. 

 The U.S. Fed will meet on Dec.10-12 for an interest rate decision and investors were likely to focus on the outlook for next year and beyond. A strong U.S. jobs data last week has renewed bets that the Federal Reserve would stand pat on interest rates. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Meanwhile, the Dec. 15 deadline is still in place for a new round of U.S. tariffs on about $156 billion worth of Chinese imports.

Gold has gained more than 13% so far this year after the Fed cut rates three times this year on the backdrop of the U.S.-China trade war and its impact on economy. "If the tariffs go into effect into the weekend gold then looks decidedly cheap and we might see an upside breakout,"