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PRECIOUS-Gold treads water near $1,160, Fed meeting in focus

Published 27/10/2015, 11:42 am
© Reuters.  PRECIOUS-Gold treads water near $1,160, Fed meeting in focus
XAU/USD
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SINGAPORE, Oct 27 (Reuters) - Gold steadied near $1,160 an ounce on Tuesday as investors kept to the sidelines ahead of a Federal Reserve policy meeting that kicks off later in the session, waiting for clues on the timing of a U.S. rate hike.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,162.96 an ounce by 0027 GMT. The metal had fallen to its lowest in nearly two weeks at $1,158.77 on Friday, but has since firmed as the dollar gave up some recent gains.

* The greenback fell Monday against major currencies on a decline in U.S. bond yields and worries about the U.S. economy after new home sales dropped steeply in September.

* New U.S. single-family home sales declined to near a one-year low in September after two straight months of gains, but a jump in prices suggested that housing remained on solid ground. urn:newsml:reuters.com:*:nL1N12Q128

* The data comes ahead of the Fed's two-day policy meet beginning on Tuesday. The U.S. central bank is widely expected to leave rates unchanged but investors are increasingly sceptical that it will raise rates before the end of the year. The Fed holds one more policy meet this year in December.

* Fed policymakers have been worried about weakening global growth and a relatively strong dollar disrupting U.S. economic growth, but they have been sending out mixed messages regarding the timing of a rate hike, the first in nearly a decade.

* Fed Chair Janet Yellen, praised as an adept listener and consensus builder, may need to adopt a stronger tone at this week's policy meeting if she expects to keep a December interest rate rise in play. Yellen's inclusive style has been tested recently by two fellow governors who publicly appeared to disagree with her view. urn:newsml:reuters.com:*:nL1N12N2MZ

* Russia and Kazakhstan raised their gold holdings for a seventh straight month in September, while Turkey and Belarus cut their reserves, according to International Monetary Fund data. urn:newsml:reuters.com:*:nL1N12Q2HL

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

MARKET NEWS

* Global equity markets slipped on Monday, pausing after a four-week rally ahead of policy announcements from central banks in the United States and Japan. MKTS/GLOB

DATA AHEAD (GMT)

1230 U.S. Durable goods orders Sep

1300 U.S. S&P/Case-Shiller housing index Aug

1400 U.S. Consumer confidence Oct

Federal Open Market Committee starts two-day policy meeting

PRICES AT 0027 GMT Metal

Last

Change Pct chg

Spot gold

1162.96

0.16

0.01 Spot silver

15.83

0

0 Spot platinum

991.99

-1.51

-0.15 Spot palladium

678.5

-0.5

-0.07 Comex gold

1163.2

-3

-0.26 Comex silver

15.85 -0.055

-0.35

COMEX gold and silver contracts show the most active months

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