Gold holds steady ahead of Fed policy statement
[BENGALURU] Gold prices steadied on Wednesday (Jul 30) as investors held back on making big bets ahead of the US Federal Reserve’s policy statement later in the day for cues into future rate cuts, while focus remained on US trade talks ahead of the Aug 1 deadline.
Spot gold was steady at US$3,329.19 per ounce as at 0020 GMT. US gold futures rose 0.1 per cent to US$3,327.70.
US and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of talks in Stockholm.
However, US officials said that it was up to US President Donald Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures.
Meanwhile, the US dollar index held steady after hitting a more than one-month high on Tuesday, making greenback-priced bullion more expensive.
Investors turned their focus to the Fed’s policy to gauge its future rate cut path, following the central bank’s two-day meeting, during which it is widely expected to keep rates steady, despite Trump’s constant call to lower them.
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The US trade deficit in goods narrowed to its lowest in nearly two years in June as imports fell sharply, cementing economists’ expectations that trade likely accounted for much of an anticipated rebound in economic growth in the second quarter.
The International Monetary Fund slightly raised its global growth forecasts for 2025 and 2026 on Tuesday, citing stronger-than-expected buys ahead of a jump in US tariffs on Aug 1 and a drop in the effective tariff rate to 17.3 per cent from 24.4 per cent.
Meanwhile, on Tuesday, Trump threatened tariffs and other measures on Russia “10 days from today” if Moscow showed no progress towards ending its more than three-year-long war in Ukraine.
Spot silver held steady at US$38.20 per ounce, platinum fell 0.4 per cent to US$1,389.20 and palladium remain unchanged at US$1,258.75. REUTERS
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