Gold prices in tight range in New York
From Business Recorder
Gold steadied in a tight range on Tuesday as investors adopted a cautious approach ahead of a crucial Brexit vote, while focus shifted to the US Federal Reserve’s stance on interest rate cuts.
Spot gold was steady at $1,484.60 per ounce as of 1:41 p.m. EDT (1741 GMT). US gold futures settled mostly unchanged at $1,487.5.
“Everything is really quiet. The biggest factor, with the Fed looming and Brexit on the horizon, in the US is really company earnings right now,” said Michael Matousek, head trader at US Global Investors.
“People who are trading gold consistently are saying Brexit is going to be a non-event and that’s why gold is not moving. (However,) if this is an incorrect assumption, and it becomes a big event, you are going to see a massive move in gold.”
Investors are also awaiting the Federal Reserve’s month-end monetary policy meeting for further clarity on rates cuts this year.
“There is a great deal of uncertainty on how the Fed is going to behave going forward and that is reflected in people just waiting for some signal,” said Jeffrey Christian, managing partner of CPM Group.
Meanwhile, equities eked out small gains after some upbeat corporate results and talk of progress in the China-US trade.
China and the United States have achieved some progress in their trade negotiations, Chinese Vice Foreign Minister Le Yucheng said on Tuesday.
Elsewhere, silver slipped 0.5% to $17.48 an ounce. Platinum was up 0.3% at $890.50 and palladium was 0.1% lower at $1,756.03 an ounce.
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