PRECIOUS-Gold inches up on Fed rate cut cheer, sombre dollar

Published 31/10/2019, 03:06
Updated 31/10/2019, 03:09
© Reuters.  PRECIOUS-Gold inches up on Fed rate cut cheer, sombre dollar

Oct 31 (Reuters) - Gold prices edged higher on Thursday

after the U.S. Federal Reserve cut interest rates as expected,

even as the central bank dropped a previous reference in its

statement that signalled future rate cuts.

FUNDAMENTALS

* Spot gold XAU= rose 0.3% to $1,499.06 per ounce as of

0137 GMT. U.S. gold futures GCcv1 inched 0.3% higher to

$1,501.40 per ounce.

* The U.S. central bank on Wednesday cut interest rates for

the third time this year to help sustain U.S. growth despite a

slowdown in other parts of the world, but signalled there would

be no further reductions unless the economy takes a turn for the

worse. * Gold prices gained modestly after the statement, but

turned negative soon after Fed Chair Jerome Powell said in a

news conference that the U.S. economy was doing well, and likely

to continue to do so under the current stance of monetary

policy.

* Asian shares cheered the rate cut and U.S. stock futures

edged higher with MSCI's broadest index of Asia-Pacific shares

outside Japan .MIAPJ0000PUS gaining 0.2%. MKTS/GLOB

* Investors now shift focus to Japan where its central bank

may trim its consumer price forecasts, but leave policy

unchanged due to hopes that progress in scaling back a

U.S.-China trade dispute will give it room to save its dwindling

policy tools. * A more than 15-month trade spat between China and the

United States has roiled financial markets and stirred global

recessionary fears.

* The dollar index .DXY against a basket of six major

currencies dipped 0.2% to 97.427, extending declines from

Wednesday. A lower U.S. currency makes dollar denominated metals

cheaper for holders of other currencies, which could help boost

their demand. USD/

* Elsewhere, gold consumption in China, the world's top

producer and consumer of the precious metal, fell 9.58%

year-on-year to 768.31 tonnes in the first nine months of 2019,

China Gold Association said on Wednesday. (DATA/EVENTS)

0030 Australia Building Approvals Sept

0100 China NBS Manufacturing PMI Oct

0745 France CPI (EU Norm) Prelim YY Oct

1000 EU HICP Flash YY Oct

1000 EU HICP-X F&E Flash YY Oct

1000 EU GDP Flash Prelim YY, QQ Q3

1000 EU Unemployment Rate Sept

1230 US Consumption Adjusted MM Sept

1230 US Initial Jobless Claims Weekly

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