Spot gold was down about 0.1 percent at $1,304.85 per ounce, as of 0428 GMT, trading in a narrow $3 range. U.S. gold futures dipped about 0.2 percent to $1,304.60 an ounce.
· “The firm dollar and gains in equities are headwinds for gold today and currently the risk appetite is slightly high,” said Benjamin Lu, analyst with Singapore-based Phillip Futures.
Asian shares were trading near six-month highs ahead of a policy decision by the U.S. Federal Reserve.
The Fed is due to make its rate announcement at 1800 GMT, followed by a news conference by Fed Chairman Jerome Powell.
· “The market is largely waiting for Fed’s decision and expectations are towards zero rate hikes this year,” Lu said, adding worries surrounding Sino-U.S. trade row might add some pressure on the metal.
Traders are even building in bets for a rate cut in 2020.
· The dollar rose against most of its peers on reports of renewed tension in U.S.-China trade negotiations. Investors since last year have favoured the dollar as a safe haven against the U.S.-China trade dispute.
· Meanwhile, palladium rose 0.3 percent to $1,601.47 an ounce, after surging past the $1,600 level for the first time to register a record high at $1,606 in the previous session.
Among other precious metals, spot platinum rose 1.2 percent to $855.93 an ounce. Earlier in the session, it touched its highest since March 4 at $858.17.
Silver dipped 0.1 percent to $15.33 an ounce.
Reference: Reuters
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