Gold investors have gone into wait-and-see mode ahead of an expected interest rate reduction by the Federal Reserve later on Wednesday that will kick off a busy round of policy decisions from leading central banks.
Prices were confined to a narrow range near $1,500 an ounce after a two-day gain following the weekend's strike against oil facilities in Saudi Arabia. The Pentagon is preparing a public assessment on who was responsible, after Secretary of State Micheal Pompeo earlier placed the blame on Iran.
Gold has surged to a six-year high in 2019 as slowing growth and the drag from the U.S.-China trade war prompted central banks to ease policy. The Fed delivered its first rate cut in more than a decade in July, casting that move as a “mid-cycle adjustment”. Investors are now waiting to see if policy makers pivot toward a more sustained run of reductions, potentially aiding bullion.
Gold was steady at $1,502.05 an ounce at 9:03 a.m. in Singapore after climbing 0.7% on Monday and a further 0.2% on Tuesday. Prices hit $1,557.11 on Sept. 4, the highest since 2013. Silver was also little changed near $18 an ounce.
Source : Bloomberg