IonQ partners with Emergence Quantum to expand APAC presence
* U.S. Fed meeting scheduled for Oct 29-30
* Palladium hovers near record high of $1,808.81/oz
(Updates prices)
By Karthika Suresh Namboothiri
Oct 29 (Reuters) - Gold prices were little changed on
Tuesday, hovering around $1,490 an ounce as progress in
China-U.S. trade talks sent equities soaring, while anticipation
ahead of major central bank meetings in the week provided some
support.
Spot gold XAU= was trading at $1,493.11 per ounce at 0938
GMT, after shedding nearly 1% in the previous session. U.S. gold
futures GCcv1 were flat at $1,495.70 an ounce.
U.S. President Donald Trump said on Monday he expected to
sign a significant part of the trade deal with China ahead of
schedule. The possibility of an extension on tariff suspensions
on $34 billion of Chinese goods also fuelled optimism.
Wall Street jumped to an all-time peak after the statements
on Monday, while Asian shares scaled a three-month high in early
trade on Tuesday. MKTS/GLOB
"There is a broad risk-on sentiment, with U.S. equities
hitting a fresh record high. The trade talks are highly
unpredictable ... It has disappointed investors many times in
the past and may repeat again," said Margaret Yang Yan, a market
analyst at CMC Markets.
"The market is very positive about it right now, but that
also means it is very vulnerable."
Gold was far from losing its sheen, analysts said, as a
dearth of clarity on trade talks and Britain's negotiations on
leaving the European Union still loomed large.
The EU agreed to a Brexit delay of up to three months, but
Brexit hangs in the balance, with British politicians still
arguing over how, when or even whether it should take place at
all. Investors also braced for another dose of policy stimulus
from the U.S. Federal Reserve this week. It is expected to cut
rates for a third time in a row when it concludes its two-day
meeting on Wednesday.
"The market has already discounted a 25 basis point cut, but
further guidance is very important on whether they will cut in
the December meeting," said Sandeep Joon, senior research
analyst at SMC India, adding further losses in gold prices were
possible.
Central banks in Japan and Canada are also scheduled for
policy meetings this week.
Lower interest rates make gold attractive as it reduces the
opportunity cost of holding the non-yielding metal.
Among other precious metals, palladium XPD= dipped 0.2% to
$1,796 an ounce, but remained close to a record high of
$1,808.81 hit in the previous session, as supply concerns
continue boosting the autocatalyst metal's appeal.
Silver XAG= fell 0.5% to $17.77 per ounce and platinum
XPT= shed 0.4% to $915.35.