Gold prices range-bound ahead of expected Fed rate cut

Gold moved in a narrow range on Wednesday as cautious investors awaited the U.S. Federal Reserve's decision on interest rates later in the day while weak equities lent support.

Spot gold was up 0.1% at $1,489.05 an ounce at 0750 GMT. U.S. gold futures were up 0.1% at $1,491.40.

"We seem to be at a bit of an equilibrium around here, stuck between $1,480 and $1,520. If the Fed is more dovish in their outlook, it could be enough to drive gold higher," said OANDA analyst Jeffrey Halley.

Investors expect the U.S. central bank to lower interest rates by a quarter of a percentage point for a third time this year, according to CME Group's FedWatch tool.

However, only about a 30% chance of another cut in December has been priced in, compared with about 70% earlier this month.

Muted movement in Asian equities on Wednesday also aided gold, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.16% from Tuesday's threemonth high on reports that an interim U.S.-China trade agreement might be delayed.

The more than 15-month trade spat between the world's two largest economies has roiled financial markets around the globe, making them sensitive to the slightest development negotiations.

"The market is very rangebound with the FOMC (meeting outcome) around the corner," said Nicholas Frappell, global general manager at ABC Bullion, adding that the potential delay in a Sino-U.S. trade agreement is supporting gold and is expected to do so for some time.

Fears of a possible global recession and economic slowdown has lent support to bullion. Data released showed that U.S. consumer confidence fell for a third straight month in October.

Across the Atlantic, Britain is set to hold a December election after Prime Minister Boris Johnson won approval from parliament for an early ballot aimed at breaking the Brexit deadlock.