Gold slipped as equities rose and investors await the outcome of the U.S. Federal Reserve’s meeting later Wednesday, with the central bank widely expected to join its European counterpart in striking a dovish tone.
Bullion for immediate delivery fell 0.2% to $1,343.52 an ounce at 10:18 a.m. in Singapore as Asian stocks built on gains in global shares. The metal jumped as much as 1.1% on Tuesday to near the 14-month high reached last week after indications of more stimulus from the European Central Bank. Holdings in gold-backed exchange-traded funds expanded to the highest since February.
Gold has climbed since late May on bets the Fed may lower interest rates amid signs that the U.S. economy is being impacted by the fallout from escalating trade disputes. While investors are agitating for the central bank to shift, economists don’t see a move this week and are divided on whether officials will cut at all in 2019. Bullion’s rally also faces headwinds from thawing U.S.-China trade tensions after the countries said their presidents will meet in Japan next week to relaunch trade talks after a monthlong stalemate.
Source : Bloomberg