Shafaq News
Gold prices fell on Tuesday,pressured by a stronger dollar, while markets looked to the Federal Reserve'supcoming policy decision for clues on the interest rate outlook.
Spot gold fell 0.7% to $4,045.89 perounce by 0448 GMT after rising as much as 1% on Monday. U.S. gold futures forAugust delivery lost 0.8% to $4,046.20.
The dollar held near a one-monthhigh, making greenback-priced bullion more expensive for holders of othercurrencies.
"We're oscillating in thisnarrow range between $3,950 and $4,200, and I think the market is just waitingfor Fed signals," said Ilya Spivak, head of global macro at financecontent network Tastylive.
The U.S. Federal Reserve willconclude its two-day policy meeting on Wednesday. Expectations that the Fedwill hold interest rates steady stand at 62%, while 38% of market participantsexpect at least a 25-basis-point rate hike, according to CME FedWatch, that isup from 16% a week earlier.
Markets are pricing in an 81%chance for a hike at the central bank's September meeting.
President Donald Trump on Mondaycalled on the Fed to lower interest rates, saying the U.S. should have thelowest interest rate in the world.
Trump also said on Monday that theUnited States was having "good talks" with Iran and there was achance of a deal to resolve their conflict, but warned that strikes wouldresume if negotiations failed to deliver.
Tehran appeared to quickly test thepause in the U.S. military campaign, with Saudi Arabia, Jordan and Iraqreporting drone attacks on Monday.
Spivak added that if the Fed meetinggenerates language that's not setting the groundwork for a rate hike inSeptember, gold is likely to rally above $4,200 per ounce.
Spot silver fell 2% to $57.23 perounce, platinum lost 0.9% to $1,605.93 and palladium slid 1.6% to $1,270.97.
(REUTERS)
Only the headline is edited by ShafaqNews.