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PRECIOUS-Gold holds above 1-month low ahead of Fed meet

Published 15/09/2015, 10:42 am
© Reuters.  PRECIOUS-Gold holds above 1-month low ahead of Fed meet
XAU/USD
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SINGAPORE, Sept 15 (Reuters) - Gold steadied above a one-month low on Tuesday as investors kept to the sidelines, awaiting the Federal Reserve's outlook this week on U.S. interest rates.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,107.71 an ounce by 0035 GMT, just above a one-month low of $1,098.35 reached last week.

* U.S. gold GCcv1 was trading at $1,107.20.

* Investors are waiting for a statement from the Fed on Thursday, following a two-day policy meet, to see whether the U.S. central bank will raise rates for the first time in nearly a decade.

* The uncertainty over the timing of a rate hike has weighed on gold all year, sending it down over 6 percent.

* Higher rates could dent demand for non-interest-paying bullion, while boosting the dollar.

* Expectations that the Fed would hike rates at its September meeting have eased recently due to concerns over slowing economic growth in China and volatility in financial markets.

* Pacific Investment Management Co, one of the world's largest asset managers and advised by former Fed chairman Ben Bernanke, puts a "below 50 percent chance" the Fed will raise short-term interest rates this week, Pimco Group Chief Investment Officer Dan Ivascyn told Reuters on Monday. ID:nL1N11K29A

* A small majority of forecasters are sticking to their guns and predicting the Fed will pull the trigger this week. ID:nL1N11H1B3

* Traders were also awaiting the outcome of the Bank of Japan's two-day policy meeting later this session, as well as BOJ Governor Haruhiko Kuroda's post-meeting speech. ID:nL4N11J02C

* For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* Asian shares and the dollar inched higher on Tuesday but caution reigned after Wall Street skidded as investors awaited this week's Fed policy decision. MKTS/GLOB

DATA AHEAD (GMT)

0900 Germany ZEW economic sentiment Sep

0900 Euro zone Employment Q2

0900 Euro zone Eurostat trade Jul

1230 U.S. New York Fed manufacturing Sep

1230 U.S. Retail sales Aug

1315 U.S. Industrial output Aug

1400 U.S. Business inventories Jul

PRICES AT 0035 GMT Metal

Last

Change Pct chg

Spot gold

1107.71

-0.69

-0.06 Spot silver

14.385 -0.025

-0.17 Spot platinum

956.9

4.4

0.46 Spot palladium

585.55

-0.45

-0.08 Comex gold

1107.2

-0.5

-0.05 Comex silver

14.39

0.027

0.19 Euro

1.1303

DXY

95.355

COMEX gold and silver contracts show the most active months

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