PRECIOUS-Gold prices hold firm above $1,500, Fed minutes in focus

Published 21/08/2019, 02:57
Updated 21/08/2019, 03:00
© Reuters.  PRECIOUS-Gold prices hold firm above $1,500, Fed minutes in focus

Aug 21 (Reuters) - Gold prices were steady on Wednesday

after recovering to above the key $1,500 an ounce level in the

previous session, with investors waiting for the minutes of the

Federal Reserve's July meeting for possible clues on further

U.S. interest rate cuts.

FUNDAMENTALS

* Spot gold XAU= had inched down 0.1% to $1,505.42 per

ounce by 0116 GMT.

* Gold on Tuesday recovered from a more-than-1% slide the

day before, climbing above $1,500 an ounce again. * U.S. gold futures GCcv1 were flat at $1,516.20 an ounce.

* Investors are now focused on the minutes of the Fed's most

recent meeting, which are due on Wednesday.

* They are also waiting for the central bank's Jackson Hole

seminar later this week and a Group of Seven summit this weekend

for clues on what additional steps policymakers may take to

boost economic growth.

* Traders see an about 94% chance of a 25 basis-point cut in

U.S. interest rates in September. FEDWATCH

* SPDR Gold Trust (P:GLD) GLD , the world's largest gold-backed

exchange-traded fund, said its holdings rose 0.21% to 845.17

tonnes on Tuesday.

* The dollar index .DXY , which measures the greenback's

value against a basket of six major currencies, was flat after

drifting away from a three-week high hit on Monday. USD/

* U.S. President Donald Trump on Tuesday said he had to

confront China over trade even if it caused short-term harm to

the U.S. economy because Beijing had been cheating Washington

for decades. * U.S. Secretary of State Mike Pompeo said on Tuesday the

U.S. was not sending "mixed messages" on Huawei Technologies

HWT.UL , and he does not believe a U.S. blacklist of the

Chinese telecommunications giant will block a trade deal with

Beijing. * Earlier, the U.S. extended a reprieve that permits Huawei

to buy components from U.S. companies to supply existing

customers, but also moved to add more than 40 of Huawei's units

to its economic blacklist. AHEAD (GMT)

* 1400 US Existing Home Sales July

* 1800 US Federal Open Market Committee releases the

minutes from its July 30-31 policy meeting

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