Gold prices steady

BENGALURU. — Gold prices held steady yesterday, after hitting a one-month high in the previous session, buoyed by political uncertainty in the US, as investors awaited the Federal Reserve meeting for clues on monetary policy. Investors also braced for possible hints on when the next interest rate hike is coming, ahead of the Fed’s rate-setting two-day committee meet which started yesterday.

“While no rate hike is expected, the market is likely to remain subdued leading into the meeting,” analysts at ANZ Research said in a note.

Spot gold was nearly unchanged at $1 255,32 an ounce, at 4.03am GMT. In the previous session, it touched $1 258,79 per ounce, its highest since June 23. US gold futures for August delivery rose about 0,1 percent to $1 255,30 per ounce.

“We remain cautiously constructive on gold as we see no end to dollar weakness for the moment given the ongoing political dramas in Washington and the approaching deadline to extend the debt ceiling,” said INTL FCStone analyst Edward Meir.

The dollar was assisted by stronger than expected readings on the US economy, but the outlook for the greenback remained clouded by fear that persistent political disorder would present obstacles to US President Donald Trump’s stimulus and tax reform agenda.

“There seems to be very little progress being made on a number of ‘pro-growth’ Trump initiatives, all being net bullish for gold,” Meir said.

The Republican Party’s repeated failures to overhaul the healthcare system, and multiple congressional and federal investigations into Trump’s campaign ties with Russia have cast a shadow over his first six months in office.