Gold price steady ahead of FOMC meet as investors await monetary policy cues

London (Sept 18)  Gold steady ahead of FOMC meet as investors await monetary policy cues. Gold was steady on Wednesday as investors awaited news on the U.S. central bank's stance on monetary policy, while some easing of the oil market's woes dented demand for safe-haven bullion.

Spot gold was barely changed at $1,501.39 per ounce as of 0708 GMT. U.S. gold futures were 0.3% lower at $1,509.10 per ounce.

"Gold prices are trading with weak momentum. Last week the ECB (European Central Bank) already cut interest rates, now the focus will be on the FOMC (Federal Open Market Committee)," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.

"The recent high near $1,560 in gold is a good resistance as of now. I do not think prices will go above it, lest the Fed indicates there will be another rate cut in December."

Economists and analysts widely expect the U.S. Federal Reserve to cut its benchmark rate for a second time this year to counter risks posed by the U.S.-China trade war.

BusinessToday