MTECHTIPS;-Gold prices hold steady ahead of Fed verdict

MTECHTIPS;-Gold prices hold steady ahead of Fed verdict MTECHTIPS-Gold prices were little changed on July 31 as investors waited on the outcome of the Federal Reserve's meeting later in the day when policymakers are expected to cut interest rates for the first time since the financial crisis. Spot gold was mostly unchanged at $1,431.07 per ounce as of 0549 GMT. US gold futures edged 0.1% higher to $1,442.90 an ounce. "Most of the people are staying on the sidelines due to the Fed meeting. If the Fed does reduce rates, gold may come down a little as a 25 basis point cut is already priced-in," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. We are also looking at whether there will be further rate cuts. Over the longer term we are still bullish on gold but in the short-term we might see a bit of correction before it continues to move higher," Lan added. Fed funds rate futures are now fully pricing in a 25 basis point rate cut on July 31 and another 25 basis point reduction by September. Markets will be watching out for guidance on whether the Federal Open Market Committee's expected move is a one-time cut or the beginning of a rate-cutting cycle. Cementing expectations of Fed rate cuts, US consumer spending and prices rose moderately in June, pointing to slower economic growth and benign inflation. US President Donald Trump, meanwhile, reiterated his call for the Fed to make a large MTECHTIPS-Apply For 2 Days Free Trails Equity & Commodity Tips WWW.MTECHTIPS.COM 07489294118-119
Published on Jul 31 2019 2:56PM, by MTECHTIPS in Commodity tips| Share This

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