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PRECIOUS-Gold range-bound ahead of Fed decision, tariff deadline

Published 11/12/2019, 12:27 pm
Updated 11/12/2019, 12:28 pm
© Reuters.  PRECIOUS-Gold range-bound ahead of Fed decision, tariff deadline
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Dec 11 (Reuters) - Gold prices moved in narrow range on Wednesday, as cautious investors held back from making big bets ahead of U.S. Federal Reserve's monetary policy statement later in the day and amid a looming tariff deadline.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,464.01 per ounce by 0104 GMT. U.S. gold futures GCcv1 were flat at $1,468.40.

* Palladium XPD= was unchanged at $1,895.72 an ounce. The autocatalyst metal hit a record peak of $1,903 in the previous session on supply woes following power outages in South Africa.

* Mines across South Africa shut down after flash flooding triggered the most severe power blackouts in more than a decade, forcing major miners Harmony Gold, Impala Platinum, and Sibanye-Stillwaterto cut output. Investors maintained a cautious stance as U.S. President Donald Trump has to decide whether to impose tariffs on nearly $160 billion in Chinese consumer goods just weeks before Christmas. Trade negotiators from both sides were planning for a delay of the December tariffs, according to a Wall Street Journal report. This followed comments from the U.S. Agriculture Secretary Sonny Perdue on Monday that Trump wants "movement" from China to avoid next round of scheduled tariffs against Chinese goods. Choppy trading ahead of the Fed verdict also kept equities and the greenback muted. USD/ MKTS/GLOB

* The Fed is set to share the statement of their December policy meeting later in the day, followed by Fed Chair Jerome Powell's news conference where investors will look for cues about the health of U.S. economy. FEDWATCH

* Powell has taken a glass-half-full view of the U.S. economy but the trouble may be that the glass has gotten smaller and has a few cracks. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust GLD fell 0.03% to 885.93 tonnes on Tuesday. In other precious metals, silver XAG= was flat at $16.65 per ounce, while platinum XPT= fell 0.4% to $918.12.

DATA/EVENTS (GMT) 1330

CPI MM, SA

Nov 1900

Federal Reserve's Federal Open Market Committee announces its decision on interest rates followed by statement 1930

Federal Reserve chairperson holds news conference

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