Gold Prices Slipped On – Monday, April 29, 2019
Gulf Brokers DMCC – Senior Technical Analyst Alaa Tabib
Gold Prices Slipped On Monday in Asia as market awaits the outcome of the next FOMC meeting.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.1% at $1,287.05 per ounce by 1:16 AM ET (05:16 GMT).
The Fed will conclude its two-day meeting on Wednesday amid expectations that interest rates will remain on hold.
The meeting is coming after official data showed on Friday that the U.S. economy grew fast than expected in the first quarter.
The Fed indicated at its March meeting that it will hold off from hiking rates for the rest of the year amid expectations for a slower pace of economic growth.
Meanwhile, soft U.S. inflation data released on Friday put pressure on the dollar and was cited as supportive for the precious metal earlier in the day.
The personal consumption expenditures price index excluding food and energy, slowed to 1.3% in the 12 months through March, from 1.8% the previous month.
Separately, Goldman Sachs (NYSE:GS) said central bank gold purchases have also been running strong, another factor that could underpin a return of the gold prices to $1,300 levels.
Sino-U.S. trade headlines remained in focus as the U.S. sends a high-level delegation to Beijing this week for more talks.
“I think they are now pretty close to the moment where there will be a breakthrough, ” Børge Brende, president of the World Economic Forum, told CNBC in an interview.
“I think it is in the common interest of the largest economy in the world, the U.S., and the second-largest economy in the world, China, to find solutions on those trade issues. That implies that both of them have to show flexibility in these negotiations,” Brende added.
“Published & Edited By: Senior Financial Analyst. Alaa Tabib – Gulf Brokers DMCC – Regulated & Licensed By SCA & DGCX”
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