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PRECIOUS-Gold steady on potential trade delay; focus on Fed rate decision

Published 30/10/2019, 02:49
© Reuters.  PRECIOUS-Gold steady on potential trade delay; focus on Fed rate decision
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Oct 30 (Reuters) - Gold prices held steady on Wednesday on

prospects of a delay in the U.S.-China trade pact, while

cautious investors awaited the Federal Reserve's decision on

interest rates later in the day.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,488.23 per ounce at 0114

GMT. U.S. gold futures GCcv1 were unchanged at $1,490.40 per

ounce.

* Investors expect the U.S. Federal Reserve to cut interest

rates by 0.25 percentage point for the third time this year

later in the day, with Federal fund futures implying that

traders see a 94% chance for a 25 basis point rate cut.

* Meanwhile, an interim trade agreement between the United

States and China might not be completed in time for signing in

Chile next month as expected but that does not mean the accord

is falling apart, a U.S. administration official said on

Tuesday. * Both economies have imposed a series of tariffs on each

other for more than a year, stirring global recessionary fears.

* Gold, which is seen as a safe investment times of

political and financial uncertainty, has climbed more than 16%

so far this year.

* U.S. consumer confidence fell for a third straight month

in October amid concerns about the short-term outlook for

business conditions and job prospects, but remained at levels

consistent with continued growth in consumer spending.

* Asian shares were in tight ranges early, as the Fed's rate

cut prospect was offset by worries that the Sino-U.S.

first-stage trade deal could be delayed. MKTS/GLOB

* Britain will hold its first December election in almost a

century after Prime Minister Boris Johnson won approval from

parliament on Tuesday for an early ballot aimed at breaking the

Brexit deadlock. * SPDR Gold Trust GLD , the world's largest gold-backed

exchange-traded fund, said its holdings fell 0.13% to 917.31

tonnes on Tuesday from 918.48 tonnes on Monday. GOL/ETF

DATA/EVENTS (GMT)

0030 Australia CPI QQ, YY Q3

0030 Australia RBA Weighted Medn CPI QQ, YY Q3

0030 Australia RBA Trimmed Mean CPI QQ, YY Q3

0630 France GDP Preliminary QQ Q3

0855 Germany Unemployment Chg, Rate SA Oct

1000 EU Consumer Confid. Final Oct

1100 Germany CPI Prelim YY, HICP Prelim YY Oct

1230 US GDP Advance Q3

1800 US Federal Reserve's Federal Open Market

Committee announces its decision on interest rates followed by

statement.

Bank of Japan holds Monetary Policy Meeting.

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