Gold steady as investors wait for next week’s Fed meeting

BENGALURU: Gold prices were largely unchanged on Friday as investors remained cautious ahead of key events next week such as a US Federal Reserve policy meeting and a summit between the United States and North Korea.


Spot gold was steady at $ 1,296.60 per ounce at 0052 GMT. It has risen about 0.3 per cent so far this week.

US gold futures for August delivery fell 0.2 per cent to $ 1,301.10 per ounce.

The dollar index , which measures the greenback against a basket of six major currencies, was little changed at 93.439. It fell to a three-week low in the previous session.

The US dollar’s dominance is forecast to fade soon, with any sudden change in expectations for the policies of other central banks posing the biggest risk, a Reuters poll of currency strategists showed.

Leaders of the Group of Seven rich nations headed for a summit in Canada on Thursday more divided than at any time in the group’s 42-year history, as US President Donald Trump’s “America First” policies risk causing a global trade war and deep diplomatic schisms.

Trump on Thursday held out the prospect of inviting North Korean leader Kim Jong Un to the White House if he deemed next week’s summit a success while also signaling he was willing to walk away if he thought talks did not go well.

The US Fed will likely raise its target interest rate to above the rate of inflation for the first time in a decade next week, igniting a new debate: when to stop.

The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to a further tightening in labour market conditions.

The euro zone began the year with slower economic growth as fears of a trade war with the United States appeared to take their toll, official data showed on Thursday.

Russian gold miner Polyus said on Thursday it planned to make a final investment decision on Sukhoi Log, one of the world’s largest untapped gold deposits, by 2020-2021, when it would also begin capital spending on construction.

Spot silver prices are poised to reach $ 20 per ounce by the end of the year, boosted by global growth, increased industrial demand and safe-haven bids amid geopolitical worries, analysts said on Thursday.