The US central bank’s policy meeting this week comes amid challenges, including a legal dispute over its leadership and efforts to confirm US President Donald Trump’s nominee to the Board of Governors
[BENGALURU] Gold prices held steady on Monday (Sep 15), hovering near a record high, as investors focused on the US Federal Reserve meeting this week, where policymakers are expected to announce a rate cut following consecutive weak labour market reports.
Spot gold held its ground at US$3,636.73 per ounce, as at 8.31 am. Bullion hit a record high of US$3,673.95 on Tuesday.
US gold futures for December delivery were down 0.2 per cent at US$3,673.60.
The US dollar index edged 0.1 per cent higher, making gold more expensive for overseas buyers.
Data from the University of Michigan on Friday showed US consumer sentiment declined for the second consecutive month in September, as concerns over business conditions, the labour market, and inflation weighed on outlook.
Inflation data released last Thursday came in slightly above expectations, but market participants largely believe this will not deter the US Fed from a widely anticipated quarter-percentage-point rate cut on Wednesday.
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The Fed’s policy meeting this week comes amid challenges, including a legal dispute over its leadership and efforts to confirm US President Donald Trump’s nominee to the Board of Governors. Investors will closely monitor the Fed’s stance regarding labour market concerns and broader economic risks.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.32 per cent to 974.80 tonnes on Friday from 977.95 tonnes on Thursday.
Speculators reduced their net long positions in gold by 2,445 contracts to 166,417 in the week ended Sep 9.
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US and Chinese officials concluded a first day of talks in Madrid on Sunday on their strained trade ties, amid Washington’s demands that its allies place tariffs on imports from China over its purchases of Russian oil.
Meanwhile, Trump said on Sunday that he is willing to impose sanctions on Russia but Europe has to act in a way that is commensurate with the United States.
Elsewhere, spot silver was steady at US$42.18 per ounce, platinum rose 0.8 per cent at US$1,402.25 and palladium was down 0.3 per cent at US$1,193.75. REUTERS