The gold price made slight gains during Asian trading hours on Tuesday as investors continued to wait for the Federal Reserve to decide on US interest rate directions on September 17
Spot gold was last at $1,121.2/1,121.5 per ounce, up $1.2 on Monday’s close. Trading ranged from $1,119.4-1,121.7 so far.
Gold remains in a neutral phase ahead of the Federal Open Market Committee meeting next week, said Commerzbank in a Tuesday morning note.
The odds of a September Fed hike is at 32 percent, ANZ Research said.
“The market seems to be betting that concerns over the Chinese economy and the associated financial market volatility will be enough to stay the Fed’s hand, although there are sound domestic grounds for the Fed to start hiking,” the bank said in a Tuesday morning report.
MKS Group sees gold continuing to test support at around $1,115-1,117, with dips still well bought. “Short term we see $1,115-1,130 as the likely range,” it said in a Tuesday morning note.
In data, China’s trade balance, the German trade balance, French government budget balance, French trade balance, along with NFIB small business index and labour market conditions index from the US are expected later on Tuesday.
In equities, Chinese investors remained nervous ahead of the release of China’s trade balance figure. The Shanghai composite index was down 0.24 percent to 3,073.161 so far on Tuesday morning.
In other precious metals, silver was up $0.02 to $14.51/14.56 per ounce recently. Platinum was last at $987/992, up $6, while palladium rose $5 to $581/587 so far on Tuesday morning.
For silver, there is strong support initially at $14.50 and then again at $14.40, with the first top-side target at $14.80, said MKS.
On the Shanghai Futures Exchange, gold for December delivery was unmoved at 232.4 yuan per gram, while December silver was flat at 3,308 yuan per kilogram recently on Tuesday morning.
The post Gold in neutral phase ahead of Fed rate decision appeared first on The Bullion Desk.
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