* Interest rate futures at a quarterly rate
* SPDR Gold stock dipped 0.14% on Friday
(Adds comments, quotes, updates prices)
By Eileen Soreng
29. July (Reuters) – Gold was little changed on Monday as
caution was placed in front of the US Central Bank
meeting, with investors likely to look beyond an expected interest rate
cut to the central bank's guidelines for monetary policy for
the rest of the year.
Spotgull edged 0.1% higher to $ 1,419.45 per ounce on
U.S. Gold futures were flat to $ 1,419.30 ounce.
"An interest rate cut is totally priced while a 50 base point
Cuts are extremely unlikely. So guidance becomes absolutely central, "
OANDA senior market analyst Craig Erlam said.
"(The gold movement) will depend on how skilled or how far
Jerome Powell leaves the door for these interest rate cuts in the months
For the first time since the financial crisis, Fed is
is expected to trim the key rate by at least 25 basis
points (bps) at their meeting 30-31
for signals of probable further cuts in the pipeline.
"Much will also depend on what Fed leader Powell says
subsequent press conference: if he does not mention a cycle
of interest rate cuts, which causes gold to come under pressure, we would not
See this as a trend reversal, but as an attractive buy
opportunity, "analysts in Commerzbank said in a note.
Interest rate futures are fully priced for a quarter
interest rate cut from the Fed on Wednesday, with only a small chance
a half-point move. Businesses will also pay close attention to the US and Chinese
trade talks in Shanghai this week, as resellers from both
country meets for their first personal conversations since a ceasefire at
G20 last month. Expectations are low for a breakthrough. On the technical front, $ 1400 will be the main drawback
support for gold, and beyond the $ 1,380, Erlam said from OANDA.
"Bulls are very reluctant to let go yet, but if we do
see these levels breaking, we can see gold bulls go to
coming out pretty quickly. "
Hedge fund and money managers reduced their bullish attitude
in COMEX gold this week until July 23, U.S. Commodity Futures
It told the Trading Commission (CFTC) in a report on Friday. SPDR Gold Trust, the world's largest gold back
listed funds, said the holding fell 0.1% to 818.14
tons on Friday. Among other precious metals, silver dipped 0.1%
$ 16.37 per ounce.
Palladium fell 0.3% to $ 1.530.38 per ounce, while
platinum received 0.8% to $ 867.26 per ounce.
(Reporting by Eileen Soreng in Bengaluru editing by Louise
5832, Foreign Ministry +91 80 6749 6131; Reuters messaging:
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