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PRECIOUS-Gold slips as fading expectations of sharp rate cut lift dollar

Published 09/07/2019, 02:38
Updated 09/07/2019, 02:40
© Reuters.  PRECIOUS-Gold slips as fading expectations of sharp rate cut lift dollar
XAU/USD
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GC
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GLD
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DXY
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July 9 (Reuters) - Gold prices fell on Tuesday as the dollar
held near multi-week highs after investors reduced bets on an
aggressive U.S. interest rate cut this month.

FUNDAMENTALS
* Spot gold XAU= was down 0.3% at $1,391.65 per ounce at
0118 GMT.
* U.S. gold futures GCv1 slipped 0.4% to $1,395.10 an
ounce.
* The dollar index .DXY was hovering near a three-week
high on Tuesday after investors rolled back expectations for a
sharp U.S. rate cut at the end of July. USD/
* Money market futures 0#FF: are still fully pricing in a
25 basis point cut at the Federal Reserve's next policy meeting
on July 30-31, but have almost priced out a larger 50 basis
point reduction.
* Fed chief Jerome Powell's comments in two-day testimony to
Congress beginning on Wednesday will be closely watched to
determine whether traders will continue to pare bets for deep
interest rate cuts. * Asian stocks struggled to make a rebound on Tuesday.
MKTS/GLOB
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.15% to 795.80
tonnes on Monday from 796.97 tonnes on Friday. GOL/ETF
* Hedge funds and money managers raised their bullish stance
in COMEX gold in the week to July 2, the U.S. Commodity Futures
Trading Commission (CFTC) said on Monday in a report delayed
because of the U.S. Independence Day holiday. AHEAD (GMT)
* 1245 US Federal Reserve Chairman Jerome Powell
gives opening remarks via satellite before the "Stress Testing:
a Discussion and Review" conference hosted by the Federal
Reserve Bank of Boston in Boston
* 1400 US JOLTS Job Openings May

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